Reverse Mergers & Low Float Plays

[Potse]

QMEI...revenue, Besra Gold position, Nasdaq......

This is some serious stuff on these numbers. My goodness, on a 300k float. What they could do with that if they wanted to. I just wish they would start to communicate more with the markets.

Definitely would be nice to see the company expand its investor relations efforts and attract a broader audience.

Revenue: QMEI's revenue numbers could get quite interesting over the next couple of years as it adds new countries/markets. If the last four months are not an aberration, QMEI might be on pace for around $480M or higher in fiscal 2023 revenue. The company changed its fiscal year end, so by subtracting the Q3 nine-month number (May 31) from the 2022 annual number (June 30) it shows that QMEI had more than $43M revenue for the month of June. In the previous 3 months (March-May) the company averaged a little over $38M per month.

Besra Gold: The acquisition of the position in Besra Gold actually turned out to be much less expensive than I had thought. According to the Supplemental filing that QMEI made on 9/28, the $5M price tag on that position was in Australian dollars. Which works out to be only a little more than $3.25M US dollars. Also nice to see that they got a 3-month option to pick up an additional 20M shares if they want to.......

Pursuant to the Agreement, the Seller granted the Company 28,571,429 Besra CDIs in exchange for $5,000,000 AUD at 17.5 cents per share, and the option (the “Option”) to purchase 20,000,000 CDI’s (“Units”) exercisable at any time within three (3) months of closing of the Agreement.

Nasdaq: Over on the QMEI board I had posted about some videos from late January 2022 in which the CEO had made some references to a Nasdaq listing. About a week ago I noticed a video from September 2021 in which he talks more extensively about Nasdaq. This video is somewhat easier to hear/understand than the others, but again the accent and language differences leave some things open to interpretation. It is from more than a year ago so obviously plans may have changed, but it might provide some glimpse of what management is thinking with regards to Nasdaq.

The CEO first appears around the 21 minute mark and starts speaking english roughly around the 21:30 mark. Not all of his answers are in english. A few things of interest that caught my attention during this video.......

1) Based on the first part of the video, QMEI is/was planning to offer 10M shares in private placements to its members/consultants/associates (prices in the $1-1.6 range). The woman in this part of the video makes an interesting comment. She notes that the company has a price projection/expectation of $20 within 1-2 years of the Nasdaq listing. She says the company would have a valuation of 1B at that price, which implies the outstanding shares after its Nasdaq listing would be 50M. I got the sense from that comment that management is very much interested in keeping the share structure relatively low.

2) The CEO repeatedly says a $5-8 share price upon a Nasdaq listing will be a "conservative" number based on the business model and financial performance. He repeatedly states that at $5 QMEI will have a P/E ratio of 5 when it is trading on the Nasdaq. I think I remember him mentioning that 1-2 year $20 price target in one of his answers.

3) I think I heard him say that any proceeds from the Nasdaq listing would be used to start a gold bullion bank in Australia.