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0.4¢ serpentine technologies limited

Kevinbarry,2 Questions.Where is it written They have already...

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Popeye82

951 Posts.

53

24/03/19

10:36

Post #: 37865313
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Originally posted by kevinbarry: ↑

This looks.... interesting.

Dulution prior to the issue of any deferred share tranches is by a factor of approx 10. This will be by a factor of about 14 sometime before 2024, presuming the revenue and EBITDA figures are met - one can assume they will be.

Based on the dilution, we need to reopen at a price equivalent to a $40mil market capitalisation (or 10 times where we presently are) on resumption to level peg our present share value and hold a MC of $56mil at some point in the future. We will end up with a company that apparently has earnings and that we have been content to pay around $22 mil for, we will hold a bit over $5 million in cash, and have future liabilities in shares and options yet to issue. That would mean we would need to open at around 19c to break even and to sit around 26c later to cover full dilution.

Even if I have not hashed up my back of envelope figures - always a possibility - I am not quite sure what to make of this transaction at this stage.

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Kevinbarry,

2 Questions.

Where is it written They have already Earnings ?

Where is any Kind of Revenue/EBIDTA Guidance published ?

GLTAL

S3R Price at posting: 0.4¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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