It all depends on where we are pre-split; CC Mexico is expected to quadruple the pps - .016 from a baseline of .004
If we made it there pre-split, that would be a pps of around $8 with a 500 to 1.
If we are shooting for a $2 pps (hinted by Matt on FB), a 125 to 1 would only be needed.
It all boils down to how the market values CBAI after the CC Mexico aquisition.
500 to 1 is worst case scenario; which he was smart for asking for in case the worst happens, but not his intentions IMO.
If everyone simplifies things instead of over complicating them (take what is said at face value), it becomes a lot clearer.
Matt Schissler What price or range will the shares be after the RS?
Ans:
again, depends on the price. Our calculations were around $2.00, but there is time between now and then
Matt Schissler After the RS, why dilute the shares again to get the share-holders back in the hole?
Ans: You're making and assumption that I can't speculate on. So lets go into theory. We know that MEX purchase price is $17.8M approx. Our NPV calculations on the samples (70,000) is $70M (1,000) per sample. So we are paying 17.8M ...to get 70M NPV. This isn't dilution, this is a huge win for all shareholders. Just quadrupled the value. The market seems to settle in on the right valuation over time. Now, Lets look at history. We paid a total of $7M for the 5 acquisitions we have made so far. And our market value went from $2M to $25M in that time frame, so we got a net $23M of value for $7M in cash. The market still had us a $25M valuation prior to Friday. I would argue that is correct (basically our sample base asset value, minus our debt and shareholders deficit). Again, this is theory, but it is the theory we run our company by.
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