Replies to post #42243 on Exobox Technologies Corp (EXBX)

[astrosfan]

I think I'd rather have 52k shares worth 100.00 than 52 shares worth 100.00 dollars.

[AskMrOwl]

Good Deal?

I agree with your math. The proposed transaction as I understand it would have done what you say.

Current value of EXBX, is about 1.5M or so. It moves around a lot.

So the question is, after the deal is done, would EXBX be worth:

1.5M*60,250,000/250,000 = 361.5M

If the answer is yes, then it would be transaction neutral because at that valuation, your diluted stock would be worth the same amount of money. Another approach to do the math:

Since you are being reversed at 1/2000 and the current PPS is .003 then the new valuation would need to be:

2000 * .003 = $6

After the transaction, the number of shares would be 60,250,000.

So total market cap would need to be:

60,250,000 * $6 = 361.5M

So, the question is, after the transaction, would the new company be worth more or less than $361.5M in market cap. If less, then a bad deal for existing shareholders. If more, then a good deal.

The math above assumes that this is a standard reverse split / issue more shares scenario and doesn't take into account anything like a share dividend of another company that we were discussing before.