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Saturday, April 22, 2023 8:45:04 AM
At the closing of the merger, it is expected that the Company’s shareholders will receive Edify common stock equal to approximately $0.03 per share for each share of the Company’s common stock that they own or into which their shares of the Company’s preferred stock are convertible.
As always, it is smoke and mirrors because he is too underhanded to come out and directly state clearly that the exchange rate is 0.0029. Instead, you need to do the math to get to that answer. Here you go:
EAC trades around $10/share. If the exchange rate was 1 UNQL for 1 EAC share, the value of the new EAC share would be $10. But Ray said the value will only be $0.03. That means a UNQL shareholder will only get a fraction of an EAC share for each owned (or convertible) UNQL share at the time of merger. What is the fraction?
0.03 ÷ 10 = 0.003 of an EAC share. I have posted here accurately many times that the exchange rate will be approximately 0.0029. Bingo! Ray said the exchange will be worth "approximately" 3 cents worth of an EAC share that trades at $10/share. 0.0029 is approximately 0.003. Math never lets you down. Only Ray lets his shareholders down with his smoke and mirrors, hide the ball sneaky language. Not an upstanding guy, and frankly treats his shareholders like they are stupid and can't figure this stuff out. What a "leader!"
So once again, do your own math. If you own 100k UNQL shares today, they are worth $1,000 trading at a penny. Multiply those 100k shares by 0.003 to see that you will own 300 Edify shares after the merger closes.
If EAC continues to trade at $10/share, your investment will be worth $3,000. But......if the price drops to, oh, say a dollar/share because that $260m was already removed from the EAC trust.....then those 300 EAC shares will only be worth $300.
Place your bets accordingly. Do you believe EAC will hold its $10 share price to triple your money? Or do you believe the fair value market cap will be around $35m with around 35m shares outstanding for around $1/share and a 70% loss?
Finally, to address "enterprise value" here is the industry formula:
Enterprise Value = Market Cap + Total Debt (short-term and long-term) - Cash and Cash Equivalents.
To arrive at that preposterous $360m enterprise value Ray stated in the PR, he was using the old EAC market cap of $280m + let's say $20m for UNQL + $50m in convertible warrants on the EAC books + about $20m of debt still owed for the Asian Offices (that's $370m total) minus Cash and cash equivalents of around $10m according to the quarterly report, and you can get to that $360m enterprise value.
This is why Ray should go to prison. He knows the MC for EAC is no longer north of $280m because he knows very well that $260m was removed from the trust account and already returned to EAC investors. The OTC is so corrupt.
Good Luck out there folks. The market is apparently done with price pops on UNQL earnings reports. It was fun while it lasted. Seems no one wants to buy and hold UNQL that "might" lose 70% value in the blink of an eye if the merger closes.
Recent UNQL News
- Form 8-K - Current report • Edgar (US Regulatory) • 03/11/2024 09:23:06 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 12:55:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/19/2024 09:30:23 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 01/17/2024 09:23:29 PM
- Form 10-K/A - Annual report [Section 13 and 15(d), not S-K Item 405]: [Amend] • Edgar (US Regulatory) • 10/31/2023 09:28:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/10/2023 10:18:01 AM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 09/15/2023 10:02:56 AM
- Form NT 10-K - Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 • Edgar (US Regulatory) • 08/30/2023 02:13:53 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/26/2023 09:00:14 PM
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