TON Strategy Company (TONX)

[TenKay]

Let’s go through this step by step and it becomes obvious where the disconnect is:

Step 1: Verb sells $20.5 million in stock to AGP. The entire offering.
VERB is +$20.5 million
AGP is -$20.5 million

Step 2: Verb buys SC for $15 million cash.
VERB is now +$5.5 million cash from offering
SC is +15 million
AGP still -$20.5 million

Step 3: SC buys units from offering for $4 million using cash from Verb.

Here’s the problem...bought from who??? AGP or VERB? Even though they appear to infer it comes from the company AGP BOUGHT ALL THE OFFERRING STOCK. It’s was already issued by Verb at the closing for $20.5 million. AGP owns it. So if SC bought the offering stock from AGP then they paid AGP the $4 million...so this is how the balance works

VERB still +$5.5 million
SC is now +$11 million
AGP is now -$16.5 million.

Cash position of VERB doesn’t change.

If the stock was bought from the company then that means only $16.5 million was placed with AGP....so VERB received $16.5 million from AGP...sent $15 million to SC (so are only up $1.5 million now) and got $4 million back....which means they are still only $5.5 million in cash on hand.