InvestorsHub Logo
Followers 170
Posts 8965
Boards Moderated 0
Alias Born 01/24/2011

Re: Magnum7419 post# 4073

Thursday, 03/19/2020 4:07:08 PM

Thursday, March 19, 2020 4:07:08 PM

Post# of 24782
How many shares for each equity partner's dollar?

I’ve also retained 4 broker dealers to engage their networks of high dollar investors to take out the debt and become equity partners.


Right now, we're seeing pretty high dilution from convertible note conversion, but OZSC also has other notes on its books.

If I'm going to buy $100K of OZSC's debt to become an equity partner, the shares that I buy will probably be restricted, and I won't be able to sell them for six months to a year. That means I'm going to want to buy them at a significant discount to the current trading price.

I'd probably want the shares at a 50% discount, but let's say that I settle for only a 25% discount. At today's price of about $0.04, that means I'm getting the shares for $0.03.

For my $100K, I'll be getting 3.33M restricted shares.

Now, let's assume there are a total of 4 investors at $100K each with the same terms. That's 13.3M new restricted shares, which puts the OS at approximately 15M shares, assuming about 1.7M shares at the end of March.

Now, suppose the deal with PCTI goes through. Ms.Chis's preferred shares give her 3 times the then-current OS, so that put's the post-reverse-merger fully-diluted OS at 60M shares.

This example only covers a $400K debt reduction at a 25% discount. More equity positions taken at a greater discount will drive the fully-diluted OS much higher.

I'm not seeing any evidence yet that this is a good stock for a retail investor until the reverse merger is complete and we see PCTI's financials.

"Soylent Green is people!!!"

Detective Robert Thorn: Telling uncomfortable truths since 2022

DRT is Charleton Heston's character in the 1973 movie, Soylent Green, set in the year 2022, and is not my real name

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent OZSC News