Replies to post #717 on JanOne Inc (JAN)

[againstallodds]

No reason to sell above book value here

At the end assets value should remain the same, or lower as ARCI
Proved to sell UNDER BOOK VALUE in the past

Post selling, quality of the assets will be greatly reduced and be composed mainly of untangible assets (air assets)

Your calculation is not quite right and should account for the prefs shares with 100:1 conversion ratio in common shares that will dilute the current commons. Once converted, they will account for 80% of commons and are held by insiders

Please resubmit your simplified scenario on a fully diluted basis

Not qualified offers presented mean nothing.

[againstallodds]

Now calculations with realistic value

a) Number of shares

Current commons 6,880,000
Pref A converted (100:1) 288,588 x 100 = 28, 858,800 commons
Total commons: 35,738,800 commons

b) Now we have to figure out the net gain in asset value IF there was a sale:

If the sale is made at the Book value, and there is nothing justifying any premium over book value as the recycling segment is loosing money) there is NO GAIN IN ASSET VALUE. Therefore no impact on share price. However, there could be a dividend declared if payment is in cash, that could trigger the will of insiders to convert the prefs A, in order to grab the divies. So the current commons would only make up 19.25% of all the new commons (fully diluted)

So shares currently at $0.65 would be worth $0.1251 (fully diluted)

Ain’t absolutely nothing presented in the last 10Q justifying a price increase, to the contrary

Recycling is the only hard cash generating activity, Geotraq is burning cash.