CLST Holdings Inc (CLHI)

[Renegades17]

Agree HH



I'm all for bullish price predictions, but some grounding in reality is better for all concerned. As a baseline, I'm assuming CLHI investors get 10% of the company, but am prepared for a lower % particularly given the two recent deals. It's fair to say that part of the private funding round (we still don't know how much they raised and at what valuation) was used to purchase the B2B database. I would imagine they use stock to do the second deal that could add up to $80mm in revenue (presumably on a run-rate basis) by the end of the first year. Applying a 10x revenue multiple on that revenue and it's $800mm in value alone.

Given the recent deals and the existing technology (B2B database, data management, AI etc.), it's certainly possible that the valuation could reach well north of $1bn (or perhaps a lot higher given comparable valuations). In such a scenario, the stock could reach $5-$10 (or more), but there are lot of variables yet to be revealed.

I would keep in mind that whatever the share issuance to other parties ends up being, the float will be very small. Consequently, the share price could extend well beyond "fair value" for an extended period.