Tthe ownership of cornell is limited to 9.9% of outstanding shares
Warrants are not shares and the warrant given to Cornell must be exercised within 3 years.The day they will
exercise their warrants they will pay the price set now .20.those warrants with the pps at .55 are markettable at
plus or minus .35
If the warrants were exercised now,they would own close to the maximum allowed.They wont.
Cornell will be buying shares at NEOM's request within the next 2 years as per their financing agreement in
slices of $2millions
If the warrants were exercised now and converted into shares Cornell would loose the possibility to buy
additionnal shares.
Those warrants will not add a penny to the cashflow of neom as long as they are not
exercised.
The only way that Neom will improve their cashflow is when they will sell shares to Cornell in slices of
$2millions.
For now thay have cashed $10millions repayable in regular installments of $1.25million a month
beginning May 1st.
They have used some of that cash to buy some pattents,some as operating cash flow,some to do the
monthly installment and some of that cash will be used to repay a few of the future installments.
If you do a simple accounting exercise you will discover that they are not going to sell shares to Cornell
tomorrow,they can hangon for a while ,they have a lot of advantage to do so,every slice of $2millions sold
at an average price of .5 equals 4millions shares,at $1.per share equals 2millions shares.In fact the higher
the pps less they will dilute
It would make sense if the first slice would go around $1.per share
The warrants will generate cash to Neom only if they are exercised.
If ever the pps would drop below .20,the warrants would not be exercised,they will be worthed $0.00 (this explanation for the newbies)
It wont happen dont worry.
At the end,they will own 9.9% of the outstanding shares plus a load of warrants that will be sellable.
The day that a F100 will take a position,dont be surprised if those warrants get sold in a private transaction.
By accident when discussing with a neighbour who is holding an executive position with a large telcom,I I mentionned Paperclick,he jumped and said THIS IS TOP SECRET,how do you know about it.
Paperclick is cooking in every telcom lab and marketing department actually,every telcom will eventually
offer the feature.It is almost a done deal but still top secret.Every telcom will offer the pipeline
The money for neom will be at the end of the pipeline this is where Mr Copus and company will have a very important job to do, the whole success of Neom will happen if they deliver.
