Americrew Inc. (ACRU)

[Potse]

splintered sunlight...finished accumulating my position......

Thoughts Potse?

Picked up another 20K at .08 and below today to finish accumulating my position (a little over 611K shares, average around .0804 per share). If I did not already have a large position, and was not trying to use my available capital for additional entries/accumulation of other shells/situations, I would probably be interested in increasing my position in the PHBR shell around this 8-cent area.

Legacy shareholders will retain 6% of the post-RM company. I consider that quite good, especially considering that other Lazar-related shells have often retained significantly lower percentages than that.

The three main management figures at AmeriCrew all look impressive to me. In particular both CEO Kelley Dunne and CFO Keith Eckert have shown the ability in the past to attract significant sums of investment capital. During his first 4 years as Co-Founder and CEO of DigitalBridge Communications, Dunne as able to secure $90+M in equity/debt.

https://www.linkedin.com/in/pdunne1/
https://americrew.com/2021/05/24/keith-eckert-cfo/
https://americrew.com/2021/05/24/brian-weis-coo/

A lot of investors will probably be turned off by the reverse split, but this post-transaction reverse split does not overly concern/bother me. My guess/hunch is that this new management is probably setting up the share structure with a post-RM RS for possible additional acquisitions, injection of investment capital, and possible move to a higher exchange.

The 8-K does not provide enough information to determine exactly what the share structure will look post-RM. For example, will Ross Dimaggio sell some of his position to the RM target as part of the deal, or will he just retain his full position and the current 29,034,000 outstanding shares will represent the 6% legacy position?

I am generally comfortable with either scenario. About the only scenario that would potentially give me a big negative outlook here is if there were an extremely unattractive financing/dilution prior to AmeriCrew receiving its 94% of the common shares.

Using the proposed minimum 1:25 reverse split, I think there is a strong possibility there will be at most maybe around 19.4M shares outstanding post-merger and post-RS. Which means at my adjusted cost basis of a little over $2 per share, I bought into AmeriCrew at a rough valuation of $40M. I'm generally comfortable with that, considering the kinds of valuations we are seeing investors pay just for pre-merger custodial shells here recently.