Singing Machine Company Inc (MICS)

[NobleRoman]

Reverse Split

So, trying to get a full handle on this. Lots of information digest. So, NASDAQ will be the board if approved. They submitted application to Nasdaq already. I don't know why they were tap dancing around what board it could be in the CC, when clearly their own filing says they submitted to Nasdaq. Public information. I just assume they know what they are talking about when it comes to public domain, but I guess that's not the case.

It won't be reverse split greater than 1 for 30. I proposed 1 for 50 off the top of my head yesterday, but that was before I learned of the dilutive penny warrants.

https://stock.us/sec/923601/0001493152-21-025339

An amendment to our articles of incorporation to effect a reverse stock split of our common stock by a ratio of not less than 1-for-10 and not more than 1-for-30 at any time prior to the one year anniversary of filing the definitive information statement with respect to the reverse split, with the Board of Directors having the discretion as to whether or not the reverse split is to be effected, and with the exact ratio of any reverse split to be set at a whole number within the above range as determined by the Board in its discretion.

So on 55 million shares and today's price of .15ish, you are looking at a range of $1.50 to $4.50 after a split. I'd go with the 1 to 30 for $4.50. That's barely squeaky by for the requirements I think for Nasdaq. What is it, 3, minimum? This was a requirement in the deal, so the short sellers want to be uplisted. They lose money under .15 I think, so lots of alignment of interests now. So now their malicious intent -- yes, I call it any fleecing while under the cover of fine print malicious -- is now self defeating to my understanding, they are in the same boat as us. They can inflict wounds on themselves now and hurt their own demands to go Nasdaq if they jack around further with your money. Sorry, about that, guys. Don't look at me. I wouldn't do that to shareholders if I were in charge.

That would give us 1.8 million shares. Then the 35 million warrants, which are anti-dilutive at this price, would become 1.2 million warrants at an exercise price of 10.5. Almost like a typical SPAC in reverse, almost. That's still pretty illiquid, so I prefer that to where we are now. I don't think you can get away with this kind of funding when on the Nasdaq, but I could be wrong. It's more reputable and I just don't see shady business like this on the Nasdaq, which is common place down here in the not-regulated-enough OTC. I would be happy if we go Nasdaq on a 1 for 30 reverse split. That is what I hope gets approved. That would then put me at 1,166 shares, and I like nice round numbers of 1000 shares. So, I like my position here. Just not as happy as I was yesterday, but happy nonetheless.

We are cash flow negative because of the huge inventory and a/r, but they explain that away with the shipping issues, which is a very valid reason. I believe that, and the a/r would be current. A lot of things could scare demand away from here, and rightly so.

I do like it for the value. Definite a long term hold, and I don't see it ever going below 10 cents. But if it does, I'd consider that a gift and buy more. Something good to add to from capital gains elswhere from time to time. Either instant gratification, or slow wealth accumulation.

It's a long way up to exercise the anti-dillutive .35. And they have 5 years before those expire, so let's see how it goes over the next 5 years. I'm really interested to see how this plays out.

After that shady sweetner, I would urge any shareholders to take heed and watch your back here. Great fundamentals, but acidic funding. Not toxic, but very acidic. Not very sweet for previous shareholders. I'll consider it my opportunity in. But I'll be watching my back and walking through doors backwards.

I think I pretty much cleared the mindfield to the best of my knowledge. I see nothing else nefarious lurking in the shadows here...