Replies to post #110093 on Protagenic Therapeutics Inc. (PTIX)

[10452km2]

Let's not take all the credit now.....

It does not matter, it's simple. You vote on the plan and if you accept it you are granting the BOD releases which means you will not be able to do anything.


IF you VOTE NO...YOU GET NOTHING and can still sue the BOD or the company but you will have to do it on your own dime.

The #1 thing shareholders should be doing right now is asking the judge for EC to be formed to look into these claims that we have sent in. If the judge does not approve an EC for us then it's game over for us and there will be very little to nothing we can do. If the judge is interested by the stuff I along with "others" sent it and believes we do in fact have some type of proof to such claims as fraud then he will grant us an EC and in which will really open a can of worms for the CRO, the company, and the BK lawyer.

[friscobound]

No it can't. We know what it's 2% of. The documents tell you what it is. It's 2% of a shell company that will have very little in assets, no debt and a claim that there are some receivables that are due them. All the creditors become the owners of the other 98%.

It's 2% of the company value which is unknown at this time. It could be 2% of a billion dollar company or 2% of a 100 million dollar company.

While it's value is "unknown", it is known it's not worth much. It's worth what a public shell is worth. 2% of that is virtually worthless. And the value of the shell is the value of the opportunity to be involved in a reverse merger and that means on average a dilution of 80% to 90% that would take the 2% down to 0.2% to 0.3%.

Example of how it works if they issue a new common stock. To keep the example simple I'm making the convertible preferred stock into common. All creditors get 98,000,000 million shares and the current shareholders 100,000,000 shares is exchanged for 2,000,000 shares of the new common stock. This gives you the 2%.

Then if they do a reverse merger at a later time, the current shareholders would typically end up with 10 to 15% of the shares. Using 10%, there would be another 900,000,000 shares issued. So the current shareholders end up with 2,000,000 of the 1 billion shares.

So prior to a reverse merger possibility down the road, the company exiting bankruptcy shouldn't be able to sustain a market capitalization over several million and that is in anticipation of a reverse merger. The current shareholders will only have 2% of that so the shares held by them shouldn't be worth more than $50,000 to $100,000. Based on the share price of 1.2 cents, those shares carry a valuation of $1.2 million dollars. The 1.2 cents needs to fall by at least 90% and it will, IMHO.