Global Digital Solutions Inc (GDSI)

[Coreton]

Price estimate for GDSI after Award ruling.


From earlier Filings, Rontan had annual earnings of $128m.

Using an estimate of 700m shares of GDSI stock outstanding (actual is about 650m at the moment) that gives you an EP of $0.18 per share.

Since Rontan is in a repayment plan with the Brazilian BK court at the moment we can use a very low P/E of 6 to give a conservative estimated pps going forward in the $1.05-$1.15 range.

If “Specific Performance” is the remedy then GDSI would take control of 100% of Rontan.

My guess would be that all monetary exchanges would be negotiated out to zero since the Bolzan’s would otherwise be required to repay any monies taken since 2015/16

This is simply an educated guess based on the facts presented in the legal documents associated with this litigation. Notice that this does not include any of the $292m in Incidental damages being asked for because that is monies owed to the Brazilian government for back taxes.

The key point of the litigation is already decided in the Default ruling and Specific performance ( ownership of Rontan)

The majority of the $292m is to pay the liabilities for back taxes not disclosed prior to the signing of and in violation of the SPA. These are not compensatory damages so they add no value to the overall transaction. Using the numbers in the GDSI filings I am not convinced the full $292m will be awarded. I think it will probably be in the $170m-$190m range. I’m sure the discrepancy will be clear when the final ruling comes out.

There could be some damages awarded for lost revenue since 2016, that’s something the judge will have to decide going forward. This would be in addition to any “Incidental Damages”

GLTA. $GDSI