Electrameccanica Vehicles Corp (SOLO)

[WeTheMarket]

Reposts from Stocktwits board.

Post #1
Following are my calculations. Note that my SOLO exchange rate matches the results of another member using a completely different method.

- Calculated current number of XOS shares based on initial merger PR stating that XOS management owns 3.23 million shares, representing 49.5% of all outstanding XOS shares, so XOS outstanding shares = 3.23/0.495 = 6.5 million.
- After the merger XOS will own 79% of the shares in the combined company, which can be estimated by 6.5/0.79 = 8.23, or 8.23 million shares.
- SOLO shares = 8.23 - 6.5 = 1.73 million (or 0.21x8.23)
- There are currently 119 outstanding SOLO shares, so exchange ratio = 1.73/119 = 0.0145
- Assuming a combined company worth of $100 million, XOS shares would be worth 100/8=12, or $12 a share at time of merger, SOLO shares at time of merger would be worth 0.21x$100=$21 million/119 million outstanding shares = $0.18

Post #2
Assuming the calculations in my previous post (above) are correct (i.e., at time of merger, if approved, SOLO shares are worth $0.18, while XOS shares are worth $12), would suggest a good strategy for current SOLO shareholders would be to vote in favor of the merger, sell their SOLO shares and buy XOS shares (as long as SOLO shares are above $0.18, and XOS shares are below $12).