Logiq Inc (LGIQ)

[stervc]

Everyone, Significant here with STOA…

According to their most recent PR below, STOA is scheduled to consummate its Definitive Agreement to acquire IRIS Corporation Berhad no later than June 30, 2013:
http://ih.advfn.com/p.php?pid=nmona&article=56787770

STOA just increased their Authorized Shares (AS) from 500,000,000 to 2,000,000,000 shares which leads me to think that they must be close to signing the Definitive Agreement to acquire IRIS Corporation Berhad. I see such as a ”very” good thing as STOA had to either increase the AS to create additional shares to consummate the Definitive Agreement for acquiring IRIS Corporation Berhad or they would of had to implement a reverse split to make room for shares to close the deal. This confirms that there won’t be a reverse split to secure the deal. That’s a great thing for us shareholders here.

It was recently confirmed from some investors that emailed the STOA Transfer Agent (TA) that the Outstanding Shares (OS) for STOA is currently 208,503,754 shares. What this means is that if I had to guess, they will probably issue to IRIS Corporation Berhad 250 million to 300 million shares to give them an at least 51% controlling interest and to cover any further dilution without losing such controlling interest until such time of the closing. This means that the OS will probably be somewhere in the area of 500,000,000 shares.

However, if they create/issue Preferred Shares to exist as the controlling interest with non-dilutive measures taken by having the Preferred Shares to be converted on a “1 for 1 basis into common” (which would never be converted to keep from losing the controlling interest) with a 1 for ??? (whatever ratio determined) basis amount for votes to cover 51% or greater of the votes, then the OS can remain the same at 208,503,754 shares which would enhance its valuation since the lower the OS is… the greater the valuation of the stock/company will be.

Either way would still leave a cushion of shares remaining in the Treasury to use as leverage if need be to further grow the company here in the US.

I really believe that there are no dilution concerns from a company (IRIS Corporation Berhad) that’s generating over “$150,000,000 in Revenues” per year and is “profitable” quite a few million dollars of which I will show later in this post.

Here’s the beauty of this deal. As seen below, STOA trades on the OTCQB:

http://www.otcmarkets.com/stock/STOA/company-info


As seen from below, IRIS Corporation Berhad trades on the Bursa Malaysian Stock Exchange:


http://www.iris.com.my/

http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=0010

What’s even more beautiful about both STOA and IRIS Corporation Berhad is that both of them file ”audited” financials. That takes the level of legitimacy up a serious notch for credibility purposes.

IRIS Corporation Berhad last Annual Report for 2012 was ”audited” as is within the link below:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=AR&company=0010

The Income Statement below from the annual report link above on page 24/25 confirms that IRIS Corporation Berhad generated Revenues for 2012 in the amount of 483,790,000 RM and Profit After Taxation in the amount of 40,844,000 RM as it is indicated in thousands (000)and in RM:


RM stands for the Malaysian Ringgit which is equal to our US Dollar here in the US. The conversion for 483,790,000 RM equates to $156,252,826 in Revenues in US Dollars and 40,844,000 RM equates to $13,191,653 of Net Profit in US Dollars as can be derived by inserting the amounts of 483,790,000 RM and 40,844,000 RM into the currency converter below:
http://www.xe.com/currencyconverter/

I see no need of doing a valuation post on STOA. It’s pretty simple to see that a company making over $150,000,000 in revenues per year while making $13,191,653 of Net Profit can go a long way within the US markets as these levels for STOA is ”significantly” undervalued in my opinion. I believe this is why IRIS Corporation Berhad wanted to enter into the US market to where its growth and true value would be better recognized and better appreciated to position the company for further growth.

To further reflect on the quality of what’s transpiring with this STOA deal, the ”audited” financials for IRIS Corporation Berhad were done by Crowe Horwath LLP:


http://www.crowehorwath.com/

Crowe Horwath LLP is one of the largest public accounting and consulting firms in the United States & Internationally.

http://www.crowehorwath.com/about/




Take a look at the subsidiaries under IRIS Corporation Berhad to see why I say that this is a major major company that is being brought into STOA:

http://www.iris.com.my/




IRIS Trusted Identification


http://www.iris.com.my/Trusted_ID/main.html



IRIS Trusted Identification Products
http://www.iris.com.my/Trusted_ID/products_solutions.html







IRIS Trusted Identification Videos of Products
http://www.iris.com.my/Trusted_ID/media_video.html

IRIS Trusted Identification Brochures to Download of Products
http://www.iris.com.my/Trusted_ID/support_download.html



IRIS Payment & Transportation


http://www.iris.com.my/Payment_Transportation/main.html



IRIS Payment & Transportation Products







IRIS Food & Agro Technology


http://www.iris.com.my/Food_Agro/main.html



IRIS Food & Agro Technology Products









IRIS Environment & Renewable Energy


http://www.iris.com.my/Environment/main.html





IRIS KOTO Industrialized Building Systems


http://www.iris.com.my/KOTO_IBS/main.html



IRIS KOTO Industrialized Building System Products







IRIS Sustainable Development


http://www.iris.com.my/Sustainable_Dev/main.html



http://www.iris.com.my/Sustainable_Dev/projects_RimbunanKaseh.html


http://www.iris.com.my/Sustainable_Dev/projects_SentuhanKasih.html




http://www.iris.com.my/bod_executives.html


http://www.iris.com.my/bod_executives.html




http://www.iris.com.my/awards_GLA.html




I don’t expect for these kind of credentials within IRIS Corporation Berhad to go unnoticed here in the US markets. I also don’t expect for STOA to be trading at these levels soon after the deal is closed. I believe a little more patience wins here with STOA as the Definitive Agreement is expected to consummate no later than June 30, 2013.

v/r
Sterling