Replies to post #7588 on Logiq Inc (LGIQ)

[stervc]

golong22, why the AS increase...

The increase of the AS is a ”very” good thing in my opinion. STOA had to either increase their AS to create additional shares to consummate the Definitive Agreement for acquiring IRIS Corporation Berhad or they would of had to implement a reverse split to make room for shares to close the deal to make sure IRIS have the controlling interest. I have seen deals over the years that were done either way. For us STOA shareholders, I like it better that they increased the AS to make room for controlling interest shares versus/instead of doing a reverse split.

It was recently confirmed from some investors that emailed the STOA Transfer Agent (TA) that the Outstanding Shares (OS) for STOA is currently 208,503,754 shares. This leads me to think that they will probably issue to IRIS Corporation Berhad 250 million to 300 million shares to give them an at least 51% controlling interest that was mentioned in the PR that IRIS will obtain from the deal. Most companies increase the AS to a number that leaves the company a cushion for further growth which leads me to think that since the AS was increased from 500,000,000 to 2,000,000,000 shares, the OS will probably be somewhere in the area of 500,000,000 to 600,000,000 shares.

With having audited financials confirming that it makes over $150 Million in Revenues and over $13 Million in Net Profits, I think the share structure will still be fair to still bring huge value into STOA. With their recent 2013 quarterly filings, they're actually on track to make over $236 Million in Revenues for 2013. Here is what the PR stated…

http://ih.advfn.com/p.php?pid=nmona&article=56787770

…thus appropriate to be acquired by Sitoa because they could potentially achieve an attractive valuation on a U.S. Stock exchange, enhance shareholder value, attract growth capital and expand its business. …

v/r
Sterling