BREAKING DOWN THE MERGER
On Wednesday night, August 18, 2021, Britannia Mining filed an amended and restated plan of merger. According to the document, it states “WHEREAS. The Board of Directors of BMIN have determined that it is in the best interest of BMIN, to effect a one-for-ten (1-10) reverse split of the BMIN common stock so that it will have no more than 52,684,553 shares of common stock outstanding prior to the issuance of the Merger Consideration (as defined herein).“ This tells us that the OS (Outstanding Shares) now is about 526.84M before the split. Reverse splits are never seen as great by shareholders, but on occasion they can be essential to making a good deal get done.
Shareholders need to realize that Bullet Blockchain is that good deal as the announcement boasts Bullet has already demonstrated its ability to meet expectations-taking possession of 3,500 ASIC Miners to solidify its initial bitcoin mining operations-increasing its ‘year-one’ anticipated buildout capacity up to a 200 megawatt facility, for a hash rate capacity of 6,000 petahash. What does that exactly mean to possess 3,500 miners? We will compare and explain later in this article. So can we assume there will soon be 52.6M OS? The answer is NO, there is more in the merger agreement.
The agreement continues, “WHEREAS the respected Board of Directors of BMIN and Bullet have determined that it is advisable and in the best interests of each of such corporations that they merge pursuant to section 92A.205 of the Nevada General Corporation Law, under which BMIN would survive, and Bullet would become a wholly-owned subsidiary of BMIN with the holders of Bullet receiving 78,049 shares of Common Stock for each Ordinary Share of Bullet outstanding resulting in the issuance of an aggregate of 16,000,000 shares of BMIN Common Stock, including the issuance of an additional 204,000,000 shares of BMIN Common Stock to Bullet’s affiliates resulting in the issuance of an aggregate of 220,000,000 shares of BMIN Common Stock for the Merger.”
The affiliates at this time are UNKNOWN, but could be connected to the $25M of secured funding which allowed them to get the initial 3,500 ASIC mining rigs. If our calculations are correct, post-split BMIN should have an outstanding 272,684,553 shares — the 220,000,000 allotted for Bullet plus the 52,684,553 common shares for the old BMIN shareholders. With BMIN closing Friday at .017, post split of 10:1 would be $0.17/share and when multiplied by the new OS, we have an estimated market cap of $46.35 million. Shareholders wait for more announcements and timelines, especially in regards to when the split will go into effect. Now that we have been able to calculate a valuation, we will later compare Bullet to other public mining stocks to better gage whether they are undervalued, overvalued or the market has them already in line.
