RushNet Inc (RSHN)

[D-Money6]

Yes, there is added cost to buy the 50% discounted shares.

The price of Helios is tough to predict at this moment in time. I assume that the MC of RSHN at the cut-off date will be used to determine the Helios price. If you take the current outstanding shares, and divide them by 800, you will have a starting outstanding shares at 9,705,802.

Then, Then they need to raise at least $8 million by selling discounted shares. So there will be an amount that gets added to the 9,705,802 shares. I know Ashley said that the OS would be likely under 40 million. However, given this situation, I can't see the OS being over 20 million. So lets say use 20 million as the OS for Helios.


If RSHN is .01, the market cap would be $77.6m
The possible price of Helios with RSHN at .01 is $3.88, so you would have to pay $1.94/share for the discounted shares. So if you have 1 million shares, and you can buy 11,000 more, thats $21,000 more you would pay to buy all your discount. But you have to know that those shares when they start trading are valued at $42,000.

At .05, the market cap would be $388.2m.
The possible price of Helios with RSHN .05 would be $19.41.
The discounted shares with RSHN at .05 would be $9.71. So if you wanted to buy all your 11,000 shares at discount, you would have to put up $106,000, but those shares would be $212,000 when they start trading.

If Helios wants to register on the Nasdaq, the price needs to be at least 4.00 share. If not, they will have to list on the OTC. Which is why I see a price of .02-.05 between now and dividend date and beyond.