Replies to post #13298 on Salamon Group, Inc. (fka SLMU)

[sreesharma]

SLMU Shares O/S per last 10Q: 23,964,000
These are the shares in SLMU before the merger and before any new shares are issued to Sunlogic for the merger.

Typical reverse mergers Shell shares end up being between 5-20% of shares O/S. New Company typically gets issued 80-95% of total shares O/S after the merger.

So 23.9 million SLMU shell shares equals 5% of 478 million shares.
So 23.9 million SLMU shell shares equals 20% of 114 million shares.

Let's be fair and talk an average of the two 5% and 20% for now since no one knows how many shares sunlogic will get for merger and this gives me 296 million shares O/S after the merger.

So 296 million shares O/S current stock price of .18 would be a post merger market cap of around $54 million dollars after the merger.

So anyone thinking the stock price will double to .36 per share this would be a market cap of $100 million dollars post merger.

Now throw in the fact Sunlogic is most likely going public to raise capital for the charging stations you have to assume more shares will get issued for funding on top of the 296 million shares O/S post merger.

So anyone buying SLMU at .18+ would need a $108 million dollar market cap to just land a double from current prices.

Key point... these numbers assume a 90/10 merger where Sunlogic ends up with 90% of SLMU. If you get a better deal and Sunlogic gets less shares you can raise the price targets. Sunlogic gets more shares you need to lower them....As I said before you need to know the split of who gets what to properly value this deal at current prices. All JMHO!