RFMK Dilution CHEAT SHEET post #11697 In a nutsh
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Posted On: 02/08/2014 6:36:52 PM
RFMK Dilution CHEAT SHEET
post #11697
In a nutshell, the roughly 2 billion shares by which the current CEO has diluted the company over the past two years
has effectively brought the company from scenario A to scenario B :
Investment scenario A (March 2012) :
Market cap = $3.7M
Debt = $650k
Assets = $0
Product == none
Intangibles == Ex management using the stock as their own personal ATM machine (self-issuances, $1M salaries, ad infinitum). No company plan other than billboard ideas for NASCAR events and Bionic ecig dreams (aka "FLUFF").
Investment scenario B (Feb 2014) :
Market cap = $16M
Debt = $0
Assets = $350k (inventory of CannaCig/Cumulus units) plus $1.2M receivable (IronRidge funding agreement)
Product == CannaCig / Cumulus launched but no longer ordering new unit batches because of launch of new dry herb product.
Intangibles == IronRidge long term global investment firm backing ($50,000 per month inflows) for years to come. What appeared to be a pay-off to the tune of ~$500,000 to previous management insiders using converted preferred share issuances to suck the company dry, which seemingly will no longer occur. Real corporate plan of action, including new and unique designed ecig by HexCorp, plan for new websites and company role as a holding company. Plan to become fully reporting, Form 10 submitted, assumption of audited financials and c211 to come "soon".
2 Billion share dilution break-down :
~100M shares diluted from preferred shares converted (1 to 30) to restricted / common shares by insiders along with ~100M shares for services rendered (50M to the current CEO as part of compensation package * 2 years)
leaves ~1.8B shares...
~800M shares settled in a court order with IronRidge for the extinguishing of outstanding debt (~$643,000)
leaves ~1B shares...
Average PPS during months/years of dilution (time range) = ~$0.0008
Total monetary capital obtained via dilution likely about $0.0008 * 1B = ~$800,000
~$500,000 given to ex-insider for unknown reason but at the same time, a stop placed on shares of same ex-insider, assumed to mean that ex-insider is out and no longer able to convert and dilute float from previous preferred share issuances.
~$300,000 to build up of CannaCig / Cumulus inventory
~50,000 to services rendered (CEO and other consultants)
This is just guesswork and many broad assumptions are made in these guesstimations, however until we see audited financials, we can only estimate such figures, but from what we know, these estimations cannot be too far from the truth.
So what did the last two years of 2 billion shares worth of dilution bring for RFMK?
In a few words, it can be summed up as the extinguishing of massive debt, the signing on of a respected global long term investment firm to guarantee the company $50,000 per month funding, real inventory of product and real operating cash flow to get the company to fully reporting status so as to develop and grow a REAL company.
Simple.
Do or do not, there is no try.
GLTA
$RFMK
post #11697
In a nutshell, the roughly 2 billion shares by which the current CEO has diluted the company over the past two years
has effectively brought the company from scenario A to scenario B :
Investment scenario A (March 2012) :
Market cap = $3.7M
Debt = $650k
Assets = $0
Product == none
Intangibles == Ex management using the stock as their own personal ATM machine (self-issuances, $1M salaries, ad infinitum). No company plan other than billboard ideas for NASCAR events and Bionic ecig dreams (aka "FLUFF").
Investment scenario B (Feb 2014) :
Market cap = $16M
Debt = $0
Assets = $350k (inventory of CannaCig/Cumulus units) plus $1.2M receivable (IronRidge funding agreement)
Product == CannaCig / Cumulus launched but no longer ordering new unit batches because of launch of new dry herb product.
Intangibles == IronRidge long term global investment firm backing ($50,000 per month inflows) for years to come. What appeared to be a pay-off to the tune of ~$500,000 to previous management insiders using converted preferred share issuances to suck the company dry, which seemingly will no longer occur. Real corporate plan of action, including new and unique designed ecig by HexCorp, plan for new websites and company role as a holding company. Plan to become fully reporting, Form 10 submitted, assumption of audited financials and c211 to come "soon".
2 Billion share dilution break-down :
~100M shares diluted from preferred shares converted (1 to 30) to restricted / common shares by insiders along with ~100M shares for services rendered (50M to the current CEO as part of compensation package * 2 years)
leaves ~1.8B shares...
~800M shares settled in a court order with IronRidge for the extinguishing of outstanding debt (~$643,000)
leaves ~1B shares...
Average PPS during months/years of dilution (time range) = ~$0.0008
Total monetary capital obtained via dilution likely about $0.0008 * 1B = ~$800,000
~$500,000 given to ex-insider for unknown reason but at the same time, a stop placed on shares of same ex-insider, assumed to mean that ex-insider is out and no longer able to convert and dilute float from previous preferred share issuances.
~$300,000 to build up of CannaCig / Cumulus inventory
~50,000 to services rendered (CEO and other consultants)
This is just guesswork and many broad assumptions are made in these guesstimations, however until we see audited financials, we can only estimate such figures, but from what we know, these estimations cannot be too far from the truth.
So what did the last two years of 2 billion shares worth of dilution bring for RFMK?
In a few words, it can be summed up as the extinguishing of massive debt, the signing on of a respected global long term investment firm to guarantee the company $50,000 per month funding, real inventory of product and real operating cash flow to get the company to fully reporting status so as to develop and grow a REAL company.
Simple.
Do or do not, there is no try.
GLTA
$RFMK
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