Verb Technology Company Inc (VERB)

[dukeb]

It's crazy, really.

As of 12/31/2022 there were approximately 117 million shares outstanding. After the 1:40 RS the O/S dropped to just under 3 million shares.

After the shareholder vote, the AS is 400 million. If the OS maxes out that means the existing shareholders will have less than 1% ownership in the company.

You could argue that the newly printed shares will go toward acquisitions. But Rory has a history of overpaying for acquisitions. In 2022 the company wrote down about $ 12 million of goodwill and intangible assets resulting from the Sound Concepts acquisition. And the revenue produced from SC has been growing at a very slow pace and, in some quarters, has actually retracted.

I don't see how the company survives. Maybe pieces will be sold off to pay some of the $36 million in debt that is on the balance sheet (a good chunk of which is owed to Rory).