Hi B,
I agree, that an uplist may be in the cards but there are so many milestones to reach prior to that. With Steven Moore's experience and guidance, it would not be out of the question. I have been told that his involvement has been instrumental in the sustenance of Montavo.
As we know, funding has been the critical next step to Montavo's success. I believe, to fully fund Montavo to revenue stage, one needs to try and comprehend the enormous task at hand. The reality is this, assuming a PRE RS s/p of .0011:
- The O/S and float were and still is relatively small.
- The past convertible notes, shares for services and MDA to develop the REV 1 product stood to increase the PRE RS O/S FULLY DILUTED to ~3.5 billion shares (see 8K). This is not a small share structure looking forward.
- In addition, the company needs an additional $500k in operating funds to get to fall product release and minimal launch (see Executive Summary). PRE RS, this would have added another 455 million shares at .0011.
- The next round of funding at $15 million (see Executive Summary)is required for market expansion. At PRE RS s/p of .0011 this would equate to 13.65 billion additional shares, with no guarantee that the s/p would hold at .0011.
All told, if they could get funded in this scenario at the .0011 level, it would result in 17.605 billion shares. That is a big if(share structure) and that is why there likely were so many roadblocks over the years. Any significant and committed funding required a master plan to get to market and an exit plan to recapture investment.
The scenario now with the RS:
- Fully diluted share count = 3.5 million
- $500k for minimal launch at ~$1.10 = +455,000 shares
- $15 million for market expansion at ~$1.10 (hopefully a lot more) = +13.64 million shares
Total fully diluted and outstanding if this scenario = 17.595 million shares.
Is it reasonable to think?
- Current MCAP = $3.85 mil (3.5 mil shares @ $1.10s/p?)
- At completion of REV 1 and minimal market launch MCAP = $38.5 mil (3.955 mil shares @ $9.74s/p?)
- At revenue stage with market expansion MCAP = $385 mil (17.595 mil shares at $21.88s/p?)
In perspective, if one held 1 mil shares pre RS and bought at .01 avg = $10,000 investment (which was worth $1,100 pre RS). The post RS holdings of 1,000 shares @ $9.74 = $9,740 and @ $21.88 = $21,888.
These are simply projections with an assumption that with each funding round the value of the company (based on MCAP)increases ten fold with all funding at the equivalent of the PRE RS value of .0011 and post RS equivalent value of $1.10.
Future funding could be valued higher or lower but I am now on the side of the fence that believes the company is better poised to bring the product to market and enhance share price prior to the largest round of financing.
The bottom line, is they need funding, they need to develop product, they need to get to market, they need to penetrate the market and then need to expand the market. It costs money and the PRE RS share structure would not allow them to do that.
As you know, my initial reaction, was similar to most here, anger and frustration, with MTVO the stock run getting killed by the RS announcement. When I googled and stumbled onto the Executive Summary dated early November 2012 (this was not given to me), it reminded me that what we think we know, we really don't and the original reason why I invested in Montavo, is because I believed the company and product had a viable future. I am underwater (a$$ whooping is probably a better description) like most here but the choice was mine to invest in Montavo and with the latest developments and disclosures of the 8K, I choose to remind myself of why I first bought in. I believe there is still hope and now a better chance of Montavo succeeding, moving forward.
All is simply my opinion and should not be construed as advice to buy, sell or hold. Everyone needs to do their own DD and come to terms with their own decisions.
Wishing you and your family the very best this Holiday Season!
D
