So nice to see this board as apposed to the other... My feeling with the R/S is that they may need to do it to close the deal. We currently have 200 million shares authorized... With a R/S of any magnitude the Shares available will be the same while the shares out there will be diminished. Say a R/S of 5. Currently OS around 180 Million goes to 36 Million... Which leaves a lot more shares to "dole out" "do a raise" to make this transaction happen...(now 164 million shares to work with instead of 20) When first talked about, the idea was that the PPS was high enough that the deal could go forward with issued shares and money (since there was about 40 million shares avail way above a dollar) At this PPS though there is not enough shares to offer/raise the money necessary for the buyout...
I think this video yesterday should help people see what the "merger" or "buyout" will produce though. THIS IS NOT THE ORACLE DEAL...THIS IS WAAAAAAAAY BETTER!! Oracle or Marketo did NOT sit around the table and say they were integrating this tech of FUSZ into EVERYTHING for their customers... THEY ALREADY have 400+K customers! Even if with the integration, they upcharge $5 per month with the current customer base (that is exploding by the way!!!) we are looking at $24MILLION in extra revenue BEYOND what they already have!! They are money positive now and with a P/E ratio eval of 80 that is a company evaluation of 1.92 BILLION!! IF they need to execute more shares to make this deal final and we end up with 250 million shares outstanding, I would say WELL WORTH IT... Current equivalent PPS would be 8 or with a R/S of 5.... PPS would be 40! Not a bad start to the year!!
How many times did they say they are KILLING IT?? Rapid growth... taking over the industry!! The sky is the limit. It MAY be that a RS is needed to get us there... Minimal pain for amazing gain!