Business Warrior Corp (BZWR)

[bob4uall]

While we are waiting, some Alchemy takeaways...

In June 2022, the Company acquired Alchemy Technologies, a global FinTech software as a service (SaaS) company. The acquisition strengthens the Company’s core marketing and lending software while expanding the Company’s brand and services to meet global demand. The value of the deal at closing was $8.75 million with $2.25 million in cash and $5 million in preferred stock with a 7%, three-year cash dividend. In addition, $450,000 in restricted common stock will go to existing Alchemy employees that will vest over 24 months.

(The preceding is what we know from the 3rd quarter report.)

1. The deal cost $2.5 million in cash, about 81% of BZWR's cash reported as of May 31.
2. The 7% dividend on $5 million (preferred stock) will require $350,000 per year for three years, totaling $1.05 million.
3. There isn't enough information given to say how many shares of common stock will vest to Alchemy employees. If the company used a share price current in June when the acquisition took place, we could estimate maybe 2.5 cents per share yielding 18 million common shares. If instead the price were pegged recently at 1 cent, that would be 45 million shares. If the price is yet to be determined, it could possibly end up as more shares.
4. The Alchemy balance sheet at the time of the acquisition is unreported so far. If it contained substantial equity to cover some of these costs that BZWR now carries, BZWR may be in a great position. If not, then the main risk is more along the lines that the talents and synergies acquired will feed their new business model and create new successes. Additionally, Alchemy has some level of sales volume possibly approaching $5 million/year.

Anyone, please comment or correct me if I have misunderstood something.