Home > Boards > US OTC > Medical - Healthcare > Wellness Center USA, Inc. (WCUI)

Here is an important paragraph from the filing:

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jdcpa1   Thursday, 09/19/19 07:40:09 PM
Re: da4483 post# 1582
Post # of 1599 
Here is an important paragraph from the filing:

We believe that DTI may possess or have access to such capital, personnel and resources to enable further development of SCI technology and services, and to successfully market them. We hope that we may share and realize upon the benefits of such development and marketing through ownership of DTI common shares. We also hope that funds received through the share exchange transaction including, but not limited to, the payments to be made to the Company upon execution of the Share Exchange Agreement and upon closing of the share exchange, as well as funds, if any, that may be received as a result of Company ownership of DTI common shares, may be applied, at least in part, to provide capital, personnel and other resources to continue Company operations, including the further development and marketing of its targeted “Psoria-Light” ultraviolet phototherapy device through its wholly-owned subsidiary, Psoria-Shield Inc.

The way I understand it, they sold SCI for $14M (minimum value of stock in DTI) and $1M cash plus a 1% future royalty. So its a $15M minimum sales price and I would need to check but I don't think the SCI assets had much of any value on the Wellness balance sheet so they could be recording a large gain in Q3 financials. If true that looks like a gain of about 14 cents per share with potential upside going forward (due to the shares having a floor value of 4.50 each and the royalty).

Also, officers and directors hold about 15M shares and the share vote in favor was 55M shares so 40M shares voted in favor that were not part of Management. Why would they vote in favor? In my opinion this looks like a good deal on paper and could be much bigger if the value of the 3.1M shares Wellness has in DTI are or become worth more then 4.50 each (each $1 increase in share value is $3.1M more gain to Wellness). Very interesting indeed and kudos to Management actually getting a deal completed.. Next I hope we hear more about the Psoria Light soon..

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