Replies to post #15741 on GBT Technologies Inc (GTCH)

[Ripdog7570]

I can ask him tomorrow when I talk to him.

$GTCH

[OnceBurned]

You asked how the recent GTCH deals will be booked. Based on GTCH's prior quarterly reports, the TREN deal, which appears to be a fait accompli, should be reflected at the current market value of the securities held. As I understand it, GTCG, through a subsidiary, gets 50% of the shares from the TREN deal. That would be 13,000,000 shares. TREN shares today (after an 8-K announcing new CEO hire whose job is to get company up-listed) closed at $1.55. That would put the current market value of GTCH's stake at $20,150,000. That is how the shares would be reflected on a consolidated balance sheet, I believe, if the balance sheet were prepared after the close of business today. If TREN's goal of up-listing to NASDAQ succeeds, GTCH's stake could be valued at $39,000,000+, as NASDAQ generally requires a $3.00 minimum share price for listing (though I suppose TREN could circumvent this with a 3:1 RS split). But given how few TREN shares are currently issued, a RS split seems unlikely as the company would be ridiculously thinly-traded.

GTCH is currently restricted from selling its TREN shares for a period. So, the dollar values you see for TREN--which could easily fluctuate down as well as up--represent potential dollar value. Not realizable yet as cash. But I think GTCH could assign/ "spend" some of these TREN shares (subject to time restrictions for trading) to debt holders to pay down debt. That's what I'd do if I were king.

Earlier GTCH filings reveal that its 50% stake in GBT Tokenize is pledged to a creditor (to secure another debt); this might ultimately deprive GTCH of some, but hopefully not all, of the value of the TREN shares.

GTCH's current market value at $0.0013/share x 2,930,000,000 issued shares is $3,809,000. Quite a contrast to the value of the TREN shares. Of course, GTCH also has $20M of debt--some of which is going away, however, as debt holders convert to equity.

I've had a position in GTCH for a couple of years. In 2021 and 2022 I was aghast at the seeming strangeness and extreme dilution of some GTCH deals (now largely written off or unwound). But, because of the deals being made in 2023--commercialization of IP without further bizarre dilution--I suddenly have hope.

[Ripdog7570]

I just shot him your question, im not sure if he can legally answer it. But we'll see what he says. Man I like this guy bro....hell of a ceo if you ask me!

$GTCH

[OnceBurned]

You asked how the Apollo deal will be booked. I don't know, but you'll be able to see when GTCH posts its 2nd Q results.

The Apollo deal, from what I can glean from the non-binding LOI, is for $42,500,000, which would be payable in preferred stock of Steven Lake's new autonomous vehicle entity. But, there is still the matter of Steven Lake's consummating the larger deal--merging the entity GTCH has contracted with into a company that has raised $500,000,000 for the new operating company. This could take a while, and of course might not actually happen.

If it does happen, the preferred stock GTCH receives would be convertible into shares (and would be quickly converted if share prices were rising, to get as many shares as possible). GTCH would be "locked-out" of trading any shares for a period, and after that would be subject to a "leak-out" restriction, which would keep it from dumping huge blocks of shares at once (as GTCH's toxic debt holders commonly do to it!). These are typical provisions.

How all this would be booked--if at all, given the overall deal's contingent nature--is above my pay grade. All I can say is that if Steven Lake gets his deal done and funds his new autonomous vehicle company, GTCH, by commercializing an element of its IP portfolio, will have earned a very nice $42.5M pay check ... that it will have to a wait while to cash. And it will have done so without further diluting existing shareholders. I like this new direction.