Integrated Ventures Inc (INTV)

[stockops]

Good evening DrDouglas,

Thought I would give you my take on why the stock price is languishing. I posted this some weeks ago, but am reposting for those who may not have seen it and are interested. I have also edited for typos, errors, and date changes up to today, as well as included the latest information provided via OTC and IHub posts taken directly from the Twitter site, and other sources.

In my opinion, the reason the stock has not shown any price appreciation is because of dilution from the DigiMine deal (as explained below). As long as new stock is being dumped into the market, the price will continue to stagnate regardless of BTC prices - unless BTC skyrockets; however, when the DigiMine dilution is complete, and the Company starts reporting better and better BTC mining returns and cash flow, the share price should reflect the positive news and filings (this of course is wholly based on BTC's continued price strength). If no other dilution occurs after the DigiMine deal, I estimate the price will start its upswing in late October to early November 2019 (based upon my analysis below). Saying that, we still do not know the particulars of the St. George/Chicago Ventures conversion (discussed below as well).

Based upon the 8K filing dated May 21, 2019, "...the Company and DigiMine LLC (“DigiMine” or the “Holder”) entered into an Exchange Agreement (the “Exchange Agreement”) pursuant to which DigiMine agreed to surrender the remaining 20,000 shares of the Company’s Series B Preferred Stock held by it and terminate its rights under the Security and Pledge Agreement, dated April 30, 2018, in exchange for 10,000,000 shares (“Exchange Shares”) of the Company’s common stock, which is to be issued in ten tranches of 1,000,000 shares each." (Source: https://seekingalpha.com/filing/4506706)

Each of these 1,000,000 share blocks was to be issued in ten (10) increments (being 1,000,000 shares issued every 10 TRADING days for a total of 10,000,000 shares, which would logically be 100 total TRADING days), EXCEPT that "...the Holder may by notice request a delay in any Subsequent Closing based upon its ownership of the common stock of the Company exceeding 4.99% of the outstanding shares...". (Source: https://seekingalpha.com/filing/4506706). I assume this statement falls under limitations set out by SEC Rule 144, which regulates restricted and control securities, and only allows a shareholder who owns 5% or more of a company's OS to sell 1% of total OS from their holdings, per quarter, as long as their total holdings are, or exceed 5% of total OS (unless the rule has changed without my knowledge) (Source: https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144htm.html).

The "Exchange Agreement" was dated 21st May 2019 and the Initial closing would be "...in no event later than May 23, 2019...", (Source: https://seekingalpha.com/filing/4506706), which means that the first batch of 1 million shares could be trading immediately: 1) After May 23, 2019, AND 2) After the date of clearance by the transfer agent.

If the Initial Closing date was May 23, 2019 (a Thursday), the first 1 million shares could have started trading within the next week (May 27-31). The second tranche could conceivably be released within ten trading days of May 23, which would fall on June 6 (again, a Thursday), and so on and so forth.

Here is the estimated breakdown of Initial Closing and Subsequent Closing dates taking into account holidays and if there were no delays at all in the Closings:

- Initial Closing: May 23, 2019
- Second Closing: June 6, 2019
- Third Closing: June 20, 2019
- Fourth Closing: July 5, 2019 (July 4, 2019 is a US national holiday)
- Fifth Closing: July 19, 2019
- Sixth Closing: August 2, 2019
- Seventh Closing: August 16, 2019
- Eighth Closing: August 30, 2019
- Ninth Closing: September 13, 2019
- Tenth Closing: September 27, 2019

Today is August 16, 2019. If the Holder got all tranches sold in sequence and never exceeded 5% OS (which should force a delay in any Subsequent Closing under Rule 144), then feasibly as of today August 16, 2019, the 7th tranche could have been closed meaning that approximately 4 million shares would remain (with the Sixth Closing being sold up through August 16, 2019); HOWEVER, according to IHub post 39769 (posted 8/8/19, 7:32:06PM: [Source: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150413203] - and presumably taken directly from the Company Twitter), the DigiMine dilution level was at 5 million shares on that date, with 5 million shares remaining to be added to the market, in addition to the "…$342,000 left on principal to convert.", from St. George/Chicago Ventures, of which we do not know the conversion details. Based upon this information (and NOT including the aforementioned $342,000 left to convert), we reached the DigiMine dilution halfway mark on or near August 8, 2019, so it seems to me that we are running a little behind based on the ten Closing dates as set out above.

Let's look at the information available to date:
- INTV's OS as of yesterday, August 15, 2019 was 35,436,531.
(Source for OS: https://www.otcmarkets.com/stock/INTV/security)
- INTV is profitable mining Bitcoin at above $4500 according to the INTV website (today's Bitcoin has been hovering around $10300).
- According to the Company Twitter account, 5 million DigiMine Exchange Securities have been issued as of August 8, 2019 (source: IHub Twitter screenshot, IHub post #39769); therefore, 5 million additional Exchange Securities are tracking to be released into the open market within the coming weeks (through at least September 27, 2019, based upon the filings above), and depending upon the application of SEC Rule 144 to the holdings.
- If all of Holder's (DigiMine) aforementioned 10 million Exchange Securities are issued and then sold into the market as set out in the agreement dated May 21, 2019, total outstanding shares could be approximately 40 million to 41.5 million shares as of mid-to-end of October 2019. This of course would only be the case if no other common shares were issued and delivered between now and mid-October.

Having said all that, considering Bitcoin's economies of scale, an additional 10 million shares being added to the OS over 100-150 days is paltry. Based upon market actions in 2017, an outstanding share count of +/- 41.5 million shares is still miniscule in the grand scheme of things - especially if INTV's Bitcoin generation goes through the roof with all the new miners coming online (while BTC holds its price levels).

If the majority of the miners come online and the general investing public sees INTV's revenue reports based upon these miners, that is when the feeding frenzy begins. Everyone wants $10 stock now, but long-term investors know that the true mettle of a company is reflected in revenue generation and a strong, consistent cash-flow (among other things).

Please feel free to critique and correct any information that you see as inaccurate. Go INTV.




Any and all opinions and/or forward-looking statements made herein are the opinion of the writer based upon existing information, and should not be used as advise for investing in this or any other security. My due diligence and opinions are my own.