Montavo, Inc.(fka MTVO)

[dmoinvest]

What everyone needs to understand.

Montavo had a choice:

1) Fund product development through equity deal announced in 8K:

http://ih.advfn.com/p.php?pid=nmona&article=55582006 or

2) Go BK, as there were no better deals available.

The current share structure fully diluted is ~3.5 million(as stated in the 8K), this means that with convertible notes, payment for services and equity deal announced the equivalent pre RS fully diluted share count would have been 3.5 billion. This is not the same as O/S and float, which is still relatively small.

The equity funding entity would not accept that share structure. Either, Montavo had to accept the terms on the table or go BK.
If BK, everyone's shares would have gone to no bid, DOA = No Value to Montavo.

Accepting terms of equity funding means we still have a pulse and at the post RS valuation of $1.10 means Montavo has a Market Cap of $3.85 million, with a plan to build the product and company (Read this Executive Summary).

http://www.slideshare.net/Montavo

All these events were developed and agreed to before the market reaction and speculation in December to one Form 3 filing. In hindsight, there is no way (IMHO), this would have hit much higher once the fully diluted accounting of shares were disclosed. Unfortunately, all these deals and accounting were not available at the time of the run but it would not take a rocket scientist to read the past filings to understand that there are derivatives/convertible notes on the books.

This is a public company, they go public to raise money, they filed audited returns showing derivitive liabilities, since July of 2010 Montavo PR'd the intent to raise additional funds through investment bankers, there was no secret that the company needed funding to develop product (It's been stated many times on this board and on the 10K's), the share structure inevitably would have to get diluted. The question is how much, when and whether the company could provide equal or greater value than the dilutive effects of funding.

BK or RS?

In my opinion, Brook had few options and ultimately took the deal because that is what was in the best interest of the company. This I agree with and therefore support the decision of the company.

Those who are in it to see the company succeed will see the light of these decisions.

Those who are in it to trade the spikes will not understand.

What is important, is the Market Cap of Montavo, currently $3.85 million, at $11 = $38.5 million (equivalent to .011 pre RS). We do not need to get $100/share to break even, that would mean folks here bought closer to $.10, which no one here did. Even still, is $385 million market cap unreasonable if their product successfully becomes the 'Holy Grail' of advertising?

Please do your own DD as all are simply my opinions.

GLTU

D