Livewire Ergogenics Inc (LVVV)

[Schneidku40]

I'd like to see a 1.28-3.19 price but I'm afraid you're doing your math wrong. You can't divide APRU's market cap by the shares LVVV gave for it because then you either totally ignore APRU's share count or LVVV's price.

An easier way is this: 2.5m shares of LVVV @ 0.108 = $270,000. That buys 60% of APRU (apparently we are ignoring what we gave Corr). So 270,000/60% means that Livewire valued APRU at $450,000, which means their current market cap is way overpriced.

The other way is to assume APRU's market cap is correct. After LVVV's shares are converted into APRU shares, APRU has 12 billion outstanding and a $13,200,000 market cap using today's closing price. 60% of that is $7,920,000.

So Livewire gets a book value on its share of APRU at either $270,000, $7,920,000, or somewhere in between. From that, you divide by Livewire's shares outstanding to determine a book value for the APRU shares. Livewire's O/S is debatable right now. Maybe we'll just use 100m to make things simple. At the $270,000 valuation, Livewire's book value from APRU is 0.0027. Using the $7,920,000 stock market's valuation, Livewire's book value from APRU is 0.0792.

I believe typically companies use the price they paid for a company and then write up/down the value each quarter or year. So currently Livewire's book value for APRU is only 0.0027 per share. That's not going to move LVVV's needle much. Not to $1.28/share anyway.

Edit- I guess I shouldn't say book value. APRU currently has a negative book value due to their debt and lack of assets (but that's not Livewire's negative book value. yet).