What is the sentiment around here? Are we going to see actual financials filed or just another nonreporting pinkie? This business is much easier to file reports versus other product oriented businesses.
IMO, we are experiencing some dilution here, but I think it is within reason. Dennis made it clear early on in a few email reponses before he clammed up that the company would definitely use this instrument to raise capital. I can't understand why any business would go public unless they intend to raise money this way. Here are a few figures, correct me if I am wrong.
According to the 15c211 Dennis issued 392,000 shares during the first two months. I assumed that these types of costs would continue. I also assumed that the IPO price was about $0.25 which equates to $98,000 before fees. So for a ballpark I am going to say $50,000 per month of expenses. At the current price (let's say $0.004) we are looking at 12.5 million shares to completely cover expenses. I believe the smaller loft buildings in Detroit are ownd by the company and currently used to secure commercial loans for future projects.
Dennis spoke early about the tv show pilots and new furniture line so it is likely that funds are being raised for those ventures as well. Just to round to a nice figure I am going to say another 7.5 million shares per month for those operations ($30,000 a month). So that comes to 20 million shares dilution per month.
At the start of July there were 21 million shares. We are now approaching five months later which brings us to about 121 million shares. Seeing now that half of the Ambrose building has been sold and all of the commerical slots are occupied and 40% of that is owned by LFWK, plus whoever owns the other 60% has got to be paying LFWK for the renovation of the lofts, one would speculate that the company's cash flow is not zero. So I am going to go out on a limb and say we will have less then 100 million outstanding shares December 1st.
By December 1st I am going to guess that we will be about 3/4 of the way through the Ambrose project. With a start date of about 1 July on that project one could guess that the project will be complete February or March. By that time we will be knee deep in a second project. The need to raise capital through sale of shares may be eliminated about that time. If not then I think we will reach the max 200 million by April.
Please feel free to refute my figures. I have thick skin. Thanks.
