Hello again to all
Been a while since posting last after selling 90% of my position, oh well , it okay.
Firstly, wanted to point out, on the E-Trade site press release for CLSI regarding Obocon, the email inquiry contact is investor relations @ Obocon
So basically, Clancy is no more and Obocon is the new entitiy. I guess we just need to wait for the official name change.
Please stay with me, the are rounded figures for illustrations purposes. Firstly, I was never a believer that some monstrous company was going to dump their operation into the existing Clancy shareholder structure and give away all their equity just to have access to the public marketplace. This put an end to the glittering speculation of a cannibis company, a CBD refiner, a MJ bank and other similar ventures
However, with the current shareholder structure, they have resolved the " giving all the equity away issue" for a company wishing to insert itself with a reverse merger.
The two majority investors own close to half the outstanding shares or 175 million. They probably have open market absorbed another 75 million bringing the insiders equity close to two thirds of all the shares.
So the outstanding float represents one third of the shares (100 million) which I say is still too much for a reverse merger candidate to give away in order to go public.
However, when you look at the total authorized share capacity, that is 800 million for treasury purposes, the outstanding float now only represents a little over 10%. Giving away only 10% of your equity to achieve a sanitary and clean public offering is now a bargain. Any underwriter would easily get that, plus the million in fees and years of paperwork.
We have here a viable company that now controls its own destiny with valuable shares, a management company that learned the hard way on how not to do a RM , example (Reliably) and has already acheived traction with acquisitions.
So, with so few shares outstanding, my small position could morph into something substantive.
What are your thoughts?
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