Why Spine Injury Solutions(SPIN) as a SPAC-like Merger Partner Is Considerably More Valuable Than Any Shell Company.
1. SPIN is NOT a Shell; it is a 12 Yr, SEC Fully Reporting Company generating minimal revenues that have always filed Audited Annual 10K’s and Quarterly 10Q’s and always on time.
2. SPIN never having had any Regulatory problems or involved in any investigations.
3. SPIN has only 20.02 Million Voting Common Shares outstanding. No other Class of Common or Preferred stock. No other class of convertible debt. Only 20,000 warrants with a $.40 Exercise
4. With a consecutive string of more than 30 SEC 10Q Quarterly Reports (Audit Reviewed) plus 10K Annual Reports (PCAOB Audited), each requiring sworn Certification by the same Chairman/CEO and CFO as sits today, the likelihood of past hidden problems is all but eliminated
5. SPIN has used the same StockTransfer Agent since its inception with an Open Book policy
6. SPIN was an innovative unique concept “start-up” in 2009, started from scratch with initial self-funding by its Chairman Dr. Donovan totaling over $3 million, most of which was subsequently exchanged by Donovan for restricted stock at an average share price of over $.60 per share, to include 512,000 shares at $1.87 per share in 2012.
7. Additional Individual high yield straight debt funding of over $2 million was made and all repaid on-time from several non-commercial lenders, and a $2 Million Credit Facility Guaranteed by a Director with Well Fargo for over half a decade was paid in full and retired in late 2020.
8. SPIN’S Core business was that of a Financial Services Company providing early liquidity primarily to Doctors who provide minimally invasive diagnostic surgical treatments to primarily Spine Personal Injury victims involved in active litigation. In recent years, financing had added PI related Traumatic Brain Injury diagnostics to its product line. To SPIN’s Knowledge, it is the only publically traded company in this lucrative $200 Billion market.
9. Since inception, Reported total net revenues of approximately $40 million.
10. Mid-last decade, SPIN acquired technology and subsequently invested close to $2 million in R&D, successfully developing and patented a HIPPA Compliant Cloud-based Video/Telemedicine System named the Quad Video Halo™ (QVH). In June of 2018, SPIN’s Dr. Donovan and the QVH were featured on the “Innovations in Medicine” segment of National Public Radio/TV, “American Health Journal”. A system that Defendant Insurers are so fearful of, that of the more than 3000 cases SPIN has used the QVH, only ONE case ever went to court (industry average 4.5%)and that plaintiff receive a Judgement more than 10 times the pre-trial settlement offer. (The QVH is in a separate Subsidiary and can either be included or excluded depending on the Merger Partner needs. )
11. Each of the Four Existing BOD members, which includes a Doctor, Lawyer, CPA, and Retired Co-Founder of a multi-hundred million industrial Company, have been on the Board for more than nine years, three for more than 12.
12. All of the Existing Directors are Shareholders totaling 43% of the outstanding shares, So Shareholder Merger Approval will be easy.
13. All Existing Directors have bought shares well above the current prices with two at prices as high as $2 a share. None have ever sold a share.
14. All Directors to include the Chairman/CEO and CFO could be available to remain with the surviving Company as either Directors or Management.
15. Since SPIN is a fully SEC Reporting active company with a long stable record, if the Merger Partner meets the financial Standards for NASDAQ or the NYSE uplisting, it will have a fast track route over any” shell company.
16. Should the Merger Partner desire financing along with closing the transaction, a Registered Stock or Debt Offering could be tacked on and receive a quick SEC review cutting both cost and time significantly
17. With the reported results of the recent Shareholders Meeting Jan. 21, 2021, increasing the Authorised shares from 50 million to 250 million and authorization of a new Omnibus Preferred stock, the Company now has all the pieces in place to execute on a Merger of any size
Over the past year, as can be seen by commentary in SPINs SEC filings, Management has been positioning the Company for one reason; To Maximize Shareholder value by providing a perfectly clean SPAC-Like Merger Vehicle to attract a profitable Merger partner. Most attractive would be one of the 30+ Private Finance Companies listed on just the first few pages of Google Search specifically looking to finance PI cases. With cash awash everywhere today, Even Hybrid Debt can be had for well under 10% annual, while the rate of return on the medical portion, when held to Settlement, can easily exceed 100% annual rate of return when using SPIN’s patented QVH.
However, the company has it's patented $2 Million invested Quad Video HALO™ in a separate Subsidiary, so it can be included if the merger partner is in the industry, But also gives the Company the option to leave it out in the case fo a Merger out of the industry.
Bottom Line; What type of Company should be attracted to doing a Merger with SPIN:
1) A Private Company already doing Personal Injury Financing. The reason most Hybrid Financing Companies are Private is they do not sell equity to fund cases; they borrow in size at low interest and invest in cases at very high rates of return. However, being public has many additional advantages. - Stock Options for employee loyalty. -Public company profile with open financials making debt raising even cheaper. -Public Company Name Recognition to attract new and larger business -Executive and Estate Financial Planning. -Tax Planning -a much-enhanced company valuation based on Price Earnings ratio, rather than private company valuation should the Company elect to later merge or sell out to VC's or larger companies.
And Most Importantly unique to SPIN, is to have control of its time and 3000+, case proved patented QVH system. A high-tech system creating higher settlements, faster settlement time, and due to a fear of the video, all but eliminates any desire by the Insurance Companies to even consider wanting to go to court.
2) Any smaller but growing revenue Private Company that does not want to spend the time, headaches, and cost to go public through an Underwriter IPO,( if it could even find an IPO underwriter if doing less than $100 million in sales).
3) Any High-Tech startup that has an exciting technology or product that does not need cash right away, but can wait until it has a premium market cap to do a registered offering.
