Clean Vision Corp (CLNV)

[old man river]

The first problem is that the company has only LOI's and not contracts. There isn't any third party evidence that the LOI's can be converted to successful contracts as the company has remained silent on the status of its funding efforts.

As for the $ 130 million, assuming it materializes, this only represents capital origination to the Clean Seas projects. If the transaction with the projects is done as a sale of goods from Clean Seas, it would result in a small one time gross margin. Yes, $ 130 million in revenue but some $ 120 million in costs! If it is deal is done as a consulting service, it would be a one time consulting fee say $ 10 million. I do not know the numbers but this is an educated guess.

An existing business earning EBITDA is worth more than what CLNV has produced to date.

Suppose there is an existing business is earning $ 3 million per year EBITDA. Current price to EBITDA in the cleantech sector is over ten times but let's use 10 for ease of the numbers. So, the target company is worth $ 30 million. A 3 cents per CLNV share, the company would need to issue one billion shares. Even if we increase the price per share and increase the multiple we still end up with big dilution and the change in control. This is typical for RTO's using shells.