Yes that should be around 5mil shares at 0.05/sh to obtain 250k and to stay below 4.99%/OS.
So it is in the company's best interest to drive the PPS up to atleast 0.05 in order to be compliant with that 4.99% rule.
It becomes a more difficult construction when you come to think about it. Let say they open one dealership/franchise per quarter and ask for an Advance with Auctus, then we ought to have 4 d/f per year, = 12df's in a 36 months contract with Auctus.
But their goal is much higher, so they will have to knock more frequently on Auctus's door to reach their goal.
10mil /250k = 40df's in 36months.
Which means in most Q's they will have to request 2 or 3 times 250k in order to keep up with the Plan.
But I don't think they'll use the whole amount (10mil) for d&f's, and that causes a decrease in their goals to open an d/f's in every state. (Maybe Dezer will throw in some additional cash...)
So if you take 5% dilution/df and we know that the SP will decrease with every new df because of that dilution, then it will be hard to maintain a high enough SP so they can stay below that 4.99% mark/OS.
Or they have to increase the OS substantially to able to comply with the agreement and according to the RRA they are going to increase that. Well, they have to anyway because Auctus is gonna purchase shares from EVCA per df/250k.
I'm just trying to know how much dilution there will be, spread over a 3 year period? A quick answer would be no more then 4.99% of the OS, which isn't so dramatic if you calculate that per sole basis... But we need plenty of df's, times 4.99% dilution per df....
PFFF I have a dozen scenario's flashing through my mind now...
I'm not going to explain further because I make it more complicated then it is...
