Replies to post #120944 on Verb Technology Company Inc (VERB)

[Nspireaction]

None, it's the exact opposite.

[Cynomus]

Potential dilution comes in 2 factors
1.) In order to buy SC, new shares will need to be issued, diluting the value of existing shares proportionately.
2.) If enough shares are unavailable, based on current price, a reverse split will be needed to free up shares in the Authorized Share count. The effect of a R/S is highly debated for a company moving up, but is quite often a sign of a bad position for a company under downward momentum.
A R/S by itself does not change the value of one's holdings, but can impact investor interest (increased OR decreased) depending on perceived health/valuation of the company. It also impacts the volume of money required to move share price inverse to the R/S ratio. So if the R/S ratio is 10:!, then it will take 10x the investor money after the R/S to move the share an equivalent amount as pre-split.

On the flip side, the merger with SC brings demonstrable value to nFusz, which might cause elevated investor interest. Presently there is no release on the full specifics of the transaction, other than we know it is coupled with the uplist to NASDAQ, and the agreed upon price.

[trader59]

$20M of stock will be sold into the market, and another $10M of stock will be given to the owners of SC. Since SC will become a subsidiary of nFusz, the last $10M will be restricted shares.

In order to sell $20M of stock and give its underwriter a sufficient discount so they'll have a sure profit, you have to figure with the volatility of the PPS (from $3 down to $0.17, back up to $0.69 and now down to where it is), I'd expect the underwriter to offer a PPS to nFusz down where they see hard support levels but with an eye on the dilutive effects on the PPS. Those seem to be in the upper $0.30's to lower $0.40's. To cut the math short, let's figure $0.40, so it'll take 50M shares of stock for the sale, and another 25M to Sound Concepts ownership. 75M shares into the O/S of 182(?)M and 50M into the float busts the A/S, of course, so there'll be a RS prior to the offering. I don't know what the float is right now, I think it's about 100M, so straight math would be a 1/3 haircut to the PPS.

Have to watch the market cap, as well, right now it's over $90M for a company that's never issued a financial report of revenues or earnings that would even come close to meriting 1/10th of that. The Sound Concepts value of $25M is likely already baked in, as well.