If Dazheng Longding , in its entirety, were to reverse merge into the TRDX shell, that would be a quite complicated process because DL has private shareholders who would have to integrate their stock in with the legacy shares of TRDX.
We presently have 2 billion shares authorized and 1.1B of those were a control block issued by custodian David Lazar to Cheng-Che Lee & shareholders. David Lazar owns 120-160M ( can't remember exactly) but that leaves a float somewhere around 500 million shares or even less.
My not knowing the revenue stream or EPS of Dazheng Longding (TAISHO), makes it extremely difficult to put a fair valuation on what the new TRDX commons would be worth upon integration.
Typically a stock is assessed a valuation of 3-5 times revenues divided by the OS.
So lets, as a simple example, hypothesize that Taisho pulls in $1B in revenues per year.
With the lowest basic multiple of 3, that nets them $3B USD.
3B divided by TRDX's 1.8B outstanding, gives us a $1.66/share base valuation using the revenue only model
Of course this is just one example of how one could fair value but there are other factors such as the number of private Equity holders in Taisho and the mathematics involved in converting their stock into ours or perhaps they are just getting a certain number of our shares for every share they themselves own.
Regardless of the metric used, it is definitely safe to say we would Gap open at least at $1.66/share but in my opinion, most likely substantially higher. And momentum wood begin at that little price-point and increase as the Chinese bolstered the stock by supporting it with tens of millions of their own dollars.
We would not be trading on the pink sheets for probably more than a week or so at that rate and would most likely get up listed to the OTCQX markets or the NASDAQ.
That was a decent question. Thanks for asking.
