Decentral Life IR Team - 5 hours ago · April 28. 2022 !
Hello all that have emailed us with questions about the Form 1-A filing yesterday.
As we mentioned in our last shareholder update on April 15th, this is the first step in many filings necessary as we approach the up listing. Expect this filing to potentially go through multiple amendments over the coming weeks and months as we complete the commenting period with the SEC on the Form 1-A.
It will eventually morph into the framework of our WDLF Token offering for non-accredited investors worldwide (in the coming months), and as soon as it has cleared the commenting period, we will re-initiate the Reg D 506c offering for the WDLF Tokens and Preferred shares. That offering was only put on hold while filing this offering. Additionally, the 2Billion additional shares noted in this offering (@ $0.0025 a share = $5M in capital raised) will be purchased (at a premium to market) by a few of our existing retail shareholders that reached out and requested the ability to participate in a set price private purchase.
This group has been a large public shareholder for many years, and they have been tracking our growth, understands our business model, and believes as we do that our market cap represents an incredibly undervalued company. We agree with their assessment that putting capital on the balance sheet will ward off short sellers and position the company to increase revenues through our new line of decentralized applications.
They of course understand the current campaign for up listing to a major stock exchange and expect a reverse stock split to accrue at or above the $0.05 mark. Along with the predicted value increase in our stock from upcoming liquidity events, we, as a group, are extremely confident that reaching the 5-cent threshold is not only attainable, but inevitable. Finally, we agree with them that the additional 2 billion shares issued will play a positive role in the increased market cap when the up listing takes place.
Moving forward towards the up listing, we will need to start filing additional forms between now and the eventual up listing, including a form 14c (Information Statement), that will be filed as early as next week. For those unfamiliar with a schedule 14c (Distribution of Information Statement), they are mandatory filings (well in advance) of a planned R/S. Among other information provided, they are designed to keep shareholders abreast of changes to the articles of incorporation such as the adjustment of outstanding shares through a stock split or reverse stock split.
That means, for those of you unaware, that a company cannot conduct a reverse stock split, or a stock split, without filing a 14c first… and that it takes a minimum of 30 days to process the filing. So, if you are ever concerned that a public you own shares in… could arbitrarily and overnight, conduct a reverse stock split… know that it cannot happen. Apparently from the emails we have been receiving, many of the new retail traders that have just begun trading stocks over the past few years are very confused with the procedures involved in conducting a reverse stock or traditional stock split. I hope that clears it up for those who have been confused.
It is important to note that in that upcoming Schedule 14c filing, we will state that the R/S cannot happen until the share price exceeds $0.05 a share. This should calm some people down that do not trust that we will not be doing a R/S for less than $0.05 a share. The Schedule 14c will, in short, outline that a reverse stock split range of 100-to-1 up to 150-to-1 will be approved by the board for a period of up to 12 months, while we complete all the necessary steps to an up listing to NASDAQ or the NYSE.
Why the range from 100/150 -to- 1? …because we must conduct a R/S to get the share price above $5 a share (preferably $7.50 to $10 a share. So, this range will do it for us given we will not conduct the R/S below the $0.05 threshold.
Why a 12-month window? …because right now, the SEC and Finra are running considerably slow, because of Covid and employee turnover. So, we are preparing for a longer period to process the up listing but operating at a speed that we hope will expedite the up-listing campaign.
Some of you have also asked about the new/additional revenue model… the digital wallet and payment platform, as well as tokenization services. Specifically, how much are we charging and how do we expect the sales to ramp up. The short answer is that the pricing is based on a setup fee and then a recurring monthly fee. The setup fee is customized to the needs of the client (typically $15K - $25K) and the monthly recurring can be as low as $1,000 a month and go up from their depending on all the customization needed for the client’s tokenization project.
As far as sales goals, we are still working through those details with our new sales and marketing partner… but early estimates put the month goals at 1 sale per week for the first 3-6 months of testing the campaign. After that, we just don’t know yet. Our pre-market testing shows an enormous appetite for the service… so we’ll need to get through the first two quarters to have a better idea of where we stand. The major takeaway for all of you as shareholders is that currently there’s an estimated 300 million digital wallets in use worldwide and that should break the 1 billion mark, by the end of 2023. So, the growth potential is most certainly there for targeting the business professionals in real estate industry, and the other TBI niche industries.
If I created more questions for you than I have just answered, please take note of them, and share with us on the Friday (April 29th) shareholder update.
