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Nope I don't think they have to pay more. they already bought the option. They just need to get the price to a break even point. Now on the bright side peeps will have two chances to get out hopefully with some profit. If they exercise the option for the full 4.8 million shares they will own more than 5% so they will have to report to sell (bad idea) what I see happening is they will exercise half the option then run the price up sell them run the price back down exercise the rest of the option then run the price back up to dump the rest,
If the share price is 14c, the option price is 10c (meaning they have to still pay the 10c for the shares). So have to pay 500k and an additional 500k for the option or 1M for the 5M shares or 20c a share when the share price is 14c, still a loss of 6c per share. I think the break even price is around 30c, but I haven't sit down and figured it. I think the confusing point is the option price at 10c is what they have to pay to get the shares in addition to the 500k, not what they get, it is in addition (even though the 500k matches it is an additional 500k they must pay).
Sell the EV business and concentrate expanding in telecom
I meant .10 after their 32% discount guess I should have clarified that. so to get to a price of break even they exercise their option at .14
10c is not break even. At 10c they have 5M shares with the option at 7c, basically worth $150k, which they would have paid $500k for. A huge loss.
They are going to be setting new 52 week lows all thru next week. Hopefully they exercise the option on the 30th and cause another fake run.
.10 would be the break even point. That way it will not cost them anymore. I am sure they do not want to invest anymore than they already have on a falling stock. Even if they got them at .10 and dumped at .08 their loss would still be small compared to losing the whole 500k. We all knew it was never going to hit 2 bucks.
That would not make sense, because they pay $500k for 5M options (nearly worthless at that price), where as if the price was 10c, they could just buy 5M shares for $500k fully vested. I imagine they never thought the price would get anywhere close to 10c because of that.
To get the full 4.8 million shares for the price of 500k they will have to drive the price to .1041 which it looks like they are trying to do.
I know peeps do not think charts work in these penny scams but they do have some relevance. That being said I believe Apollo will be getting these shares at the lowest possible price by looking at the chart. I will be getting back in this next week after it falls a little more, Once they accumulate all them shares they will create a false run like what happened when it was at .06. Hopefully make it to at least 3-5 bucks this time.
Good points and mentioning the cashless option. Either way I think that the exercise price will be set Sept 30. Apollo doesn’t have to purchase at that time, but I think that after that day they will be hoping for much higher prices, as longs do too.
Also, yw and thx BW and OM69
I will also point out, using your example 30c and 20.4c exercise price, if they did that just to dump the shares, they would have to pay the exercise price also, or 20.4c x4.8M or almost $1M dollars. So $1.5M to the company for 500,000 shares or 33c per share, which doesn't sound like a great deal if the share price is 30c.
Or if they do the cashless option,
(.30-.204)/.30 = .32 or 32% of the 4,8000,000 shares = 1.5M shares. So 1.5M shares for $500,000, same 33c per share, which doesn't sound like a great deal if they can buy those at 30c.
IMO some people say that yesterday and panic sold, thinking it was 5M shares being sold for 500k, not 5M options, which has much less value at the current share price, which is why I bought 50k more yesterday to add to my long hold (I may add more today if they drop if more). We will see in the next couple years if that was a good investment
DH, as always great info to consider. We are all waiting for $IQST to be profitable.
Thank you!!!
It's an amendment to the S-1 filed on September 2, 2022. It's basically the same information in most regards. I may have missed something but it appears that the details regarding the potential company offering are mostly the same. And recall that the company offering can be used wholly, or in part, or not at all, as they see fit. It looks like they want to issue any such shares at $1.00 and the majority of the proceeds are expected to go to fund acquisitions, potential dilution for growth, and the plan should be to create plenty of extra shareholder value to more than outweigh any dilution.
Also, be sure to note the statements in red that explain that the prospectus is not complete and may be changed. (further amended). For example, if the share price trades at $2.00 or more later they would likely amend the target price to issue those shares at $2.00, or some other appropriate price.
The primary difference that I can see in the amended S-1 is that the amendment contains more details regarding the option that was purchased by Apollo. I'm no options expert and the details are complex for me, but if I understand correctly then Apollo may - and under the correct conditions and timeframes - be able to acquire shares under the $2.00 exercise price.
"the exercise price of $2.00, as may adjusted by certain provisions in the option, such as stock splits, price adjustments for future options with lower exercise prices, price adjustments in the event our stock trades below $2.00 on the initial exercise date with such new exercise price to be at a discount of 16% and up to 32% of the market price of our stock (if the stock falls below $1.50) on the date of exercise"
It may sound odd at first, but it's not necessarily as big a windfall for Apollo as it may seem. If we assume a share price of $.30 on September 30, and if Apollo could and did exercise then, and if they were able to get the maximum discount they could perhaps acquire 4.8 m shares at $.204. In theory, if they then sold those shares at $.30 they would make $460,800. That's less than what they paid for the option, so not so good a deal for them in that case.
So it looks like they potentially benefit with a low market price as of September 30. Perhaps the lower the better. But the flip side is that after September 30 they would benefit more with the highest share price they could get for selling. The higher the better for them.
If I got that right then take it as you wish, and keep in mind that I could be in error on some or all points.
But here is what I see is the takeaway points for shareholders. First, the company has not been profitable and the shortfall in cash has to come from somewhere. This option was a way to take care of some of that. The guidance is that Q4 may be profitable. We should hope that is the case, and also hope that this option, ($500,000) will carry their funding needs until they may become profitable.
No one wants to see dilution, but it would be much preferred in my opinion to come from the potential company share issuance, and at a higher price, such as the target $1.00 or more. Or better yet, that we can see operating expenses covered by profits in the future.
The option served its purpose, but I hope they don't have to do that again. It seems counter productive to have any party with a possible interest in seeing a lower share price. We (long) shareholders wish to see higher prices, but the company should also wish to see higher share prices so they can issue shares at higher prices rather than make deals that seem protective of those who provide the funds. It's just the kind of thing that has to be done sometimes to keep things going.
The bottom line is cash from operations, from profitability, can eliminate the need for these type of deals. We should hope iQSTEL can avoid these situations in the future as we, or they, should not want any parties hoping for lower prices at any time. But they had deficits and this is how they dealt with it, its done, or it should be done as they potentially deliver on profits. Also, It may help a bit to note that even with an exercise price at $.204, if that's what it turned out to be, that would bring in nearly another $1 million in cash for iQSTEL. (and thus indirectly to us shareholders).
The final takeaway is that further discussions on this issue is just looking at the past. The dilution potential is unpopular but relatively small and the company apparently felt it was necessary to continue operations. Unfortunately every time they file one of these S-1's it starts another round of discussion. Especially when market prices are weak.
But also consider that, while Apollo perhaps hopes for lower prices up to Sept 30, by October 1 they may be more interested in seeing higher prices, at least to our knowledge, if these thoughts are on target.
Of course most of the market is down and it may not help us that there may appear to be lots of possible good buys all over the place. I can't say what comes next for iQSTEL but I'm hopeful some solid good news appears such as a signed contract with BASF and related projections, or similar such regarding other IoT, Fintech, EV, Telecom, or etc.
Everyone has their own levels for risk tolerances, and their own opinion on risk vs reward. Should do their own DD and depend on that for investment decisions. My opinions, are just that and not investment advice. I feel good about iQSTEL long term, but I would reconsider if they miss performance targets. Thankfully they gave some pretty specific metrics in expectations for the next couple of quarters. Perhaps some amount of leeway could have merit, but its time to deliver, and I am looking for that. No precise dates, just looking for concrete progress, and I think that the guidance is promising, even if not as specific as we may desire yet.
Dh, can you clarify this S1/a for us. Thanks as always.
4th Qtr of 2155 AD maybe? Even that is being optimistic. Another PR vomit shit bowl served up to share holders.
Numbers for bikes? Distribution plans? Anything? Numbers for July and August? Realistic goals and plans for the other divisions?
Hopefully they had fun in Madrid...
Maybe they could by their own shares?
Maybe just another penny scam.
1 more week and 4.8 million dump at a 32% discount shamful. Back to .06.
This has to do with the relationship between the US & China... it is making a lot of people nervous !
Now we have a new 52 week low. But wait till tomorrow afternoon and we should set another new one.
Well this could cause another fake run like when it was at .08. Maybe it will hit 5 bucks a share this time LOL.
This is what wasn't explained. Pay special attention to section(B). what a scam glad I got out. No wonder they are dragging the price down. Now we know what the actual excuse is.
We issued a one year Common Stock Purchase Option with a grant date of April 25, 2022 to Apollo Management Group, Inc. for $500,000, for the right to acquire up to 4,800,000 at an exercise price of $2.00 per share, subject to certain adjustments as explained below. The one year period commences when the option may be exercised, with an initial exercise date of September 30, 2022, and expiration date of September 30, 2023. If at the time of any exercise, the shares of common stock underlying the option are not subject to an effective registration statement, the option may be exercised, in whole or in part, at any time or from time to time by means of a “cashless exercise” in which the holder is entitled to receive a number of shares of common stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
(A) = the daily average of the VWAP for the shares of common stock for the 10 trading days immediately preceding the date on which holder elects to exercise the option by means of a cashless exercise;
(B) = the exercise price of $2.00, as may adjusted by certain provisions in the option, such as stock splits, price adjustments for future options with lower exercise prices, price adjustments in the event our stock trades below $2.00 on the initial exercise date with such new exercise price to be at a discount of 16% and up to 32% of the market price of our stock (if the stock falls below $1.50) on the date of exercise; and
(X) = the number of shares of common stock that would be issuable upon exercise of the option in accordance with the terms of the option if such exercise were by means of a cash exercise rather than a cashless exercise.
Will someone translate significance of S-1/A filing just now? Thanks.
IQSTELjust finished their website revamp : https://iqstel.com
new one year low. let's rearrange the deck chairs.
Major selloff today. What's the new excuse.
lololol. does it make motorcycles?
Need to actually do something to protect your shareholders.
Make that .07% above 52 week low
Tweet out
$IQST - IQSTEL, we just finished our website revamp #otcmarkets #otcqx #nasdaq www.iqstel.com
IAM THINKING AROUND OCT 15 $$IQST$$$$$$$$$$$$
What are the July and Aug numbers?
Looks like everyone is stacked at .32, nothing on the bid. See what happens at the open when everyone else jumps in.
Tweet out
$IQST - IQSTEL, our stands (2) in the WWC event in Madrid, one for Voice and one for SMS #otcmarkets #otcqx #nasdaq
$IQST - IQSTEL, our stands (2) in the WWC event in Madrid, one for Voice and one for SMS #otcmarkets #otcqx #nasdaq pic.twitter.com/lA5JG9uILi
— iQSTEL Inc. (OTCQX: IQST) (@IQstel) September 21, 2022
Great. I didn't look at your post before I responded just now.
When you click on More Info that takes you to the Motor Cycle page in Spanish, a box should pop up that lets you translate. Click on the button to translate from Spanish to English. However, I did click on the American Flag as you did and the page was translated to English for me.
The problem was an incompatibility with AVG Browser. I used Microsoft Edge and the sub-pages can display in English properly. Just FYI.
I tried the button with the American flag..... that only took me back to the first EVOS page.
RIGHT ON $$IQST$$$$$$
company issued pr saying 15k EV in 4th qrtr $$$$$$$$$$$$$$$$$$$$$$$$
There is a button to translate web page language to english.
its 99 dollars per month
Well, its definitely an improvement from before. I tried to click on the buy button for the EVOS motorcycle and it will only take me to a page in a foreign language. No English options. I'm sure they are not ready for selling in the US yet but, I was testing out the functionality of the new pages and their links. Still needs some tweeking but an improvement.... yes.
IQST reminds me of an old saying we had in the navy - "Hurry up and wait, Hurry up and wait."
Seems like $IQST has updated their website. The newly updated website looks good to me. What do you think about their website?
I don't think you should be expecting one anytime soon, friend.
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