I'm putting sell orders in tonight. In my opinion, the thing to do right now is short IMVS and buy PGPM. I've already got my position in PGPM and I can't short IMVS, so I'm sitting with what I've got.
Look at the structure of the deal. We're (PGPM shareholders) getting about 30% of the new company. IMVS is trading at 70 cents with an estimable total outstanding shares of around 60 million when the deal is finished. That puts the market cap at about $42 million dollars. PGPM shareholders, with 1 billion shares outstanding, will own about 30% of a company currently valued at $42 million BASED ON TODAY'S price action. That's a $12.6 million dollar share of the final company for current PGPM shareholders. Divide that by approximately 1 billion PGPM shares outstanding and you get a share price of 0.0126 for PGPM to be AT PARITY with IMVS right now. Perhaps that is why someone bought PGPM shares at 1 penny today. So, either IMVS is trading too high or PGPM needs to move up to 0.01 to be at parity with IMVS based on some true, fundamental reason we don't know about yet.
Bear in mind that this could all be a shell game -- it could be a pump going on. Why SHOULD the final entity be valued at $42 million right now? We are still waiting for the monetization of the $40 million that is currently locked up on the PGPM balance sheet as an "investment," as boxter has so thoroughly explained.
We don't know any more today than we did a few weeks ago, but these prices we are seeing on PGPM and IMVS definitely make sense with respect to the $40 million number we've all had in our heads for the past who knows how long.
Maybe IT is happening, or maybe it's a pump. All I know is, if it starts to go up I'm selling at least SOME of my holdings in case it's all a scam.
It's getting interesting.
Good luck to everyone.
-penn_e_pincher
