Uplisting to AMEX at Year End Analysis... The a
Post# of 8802
Posted On: 04/01/2016 10:02:45 AM
Re: Vulcan classic #3261
Uplisting to AMEX at Year End Analysis...
The answer to whether a RS will be needed if they want to uplist by year end is 100% due to the share price. The higher the share price the less the RS and if the share price is $2 we won't need it at all.
Below is an analysis of what Standard would be used to uplist to AMEX and the worst case scenario for a RS and if they just went back to 500mil AS which they have done a couple times. Like I said...if the share price is $2 they won't need one at all.
DEFINITIONS:
Public float - refers to shares of stock owned by the public and not by company directors, officers or controlling interest investors.
Shareholder equity - is the net worth of the company--that is, the difference between assets and liabilities.
Market capitalization - refers to the market price of the entire company. This is calculated by multiplying the number of shares in investor hands by the market price of the stock.
CURRENT:
Shares in public hands (non-director) – 1,875,000,000
Current Share Price - $.0016
Public Float – 1.875 * .0016 = 3mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 12.5bil * .0016 = 20mil
If they want to uplist by EOY then they won’t meet #1 and #2 below which requires 2 years of financials.
Standard 3 is the most likely option in that case. Unless the share price is $2 by YE they would need to do a RS. I calculated the worst case scenario below that would be needed to meet the 15mil public float at $2 per share - The shares in non-director hands would need to be at least 7.5mil. (15mil / 2 per share). I also calculated the scenario which puts them back to 500mil in AS which is a number they have gone back to a couple times in the past. But as I said…if the pps is $2 they won’t need a RS at all.
Standard 1 – Needs two years of operations
$750,000 in pre-tax income in the two most recent fiscal years
The minimum price of its stock must be $3
Public float must have a market value of $3 million
Shareholder equity must be at least $4 million.
Standard 2 – Needs two years of operations
Company must have a stock price of at least $3.
The company does not have to meet income requirements.
Public float must be at least $15 million
Shareholder equity must be at least $4 million
AMEX requires companies to provide at least two years of operating history.
_______________________________________________________
Standard 3 – Most likely scenario
Meet a minimum of $50 million in market capitalization.
Meet a minimum $15 million market value public float
A Minimum of $4 million in shareholder equity.
Share price must be at least $2.
This option would be most likely if they don’t have two years of operations and two years of profits as in #1 and #2 above.
The biggest challenge in uplisting will be shareholders equity which is Assets less Liab and is currently negative for both companies and needs to be $4mil. That would mean they would have to increase assets and decrease liabilities but that profits would be needed to do this as well in order to increase cash.
***Depending on the share price at year end I calculated a few options for a RS below.
NO RS - IF SHARE PRICE WAS $2 with Current SS
Shares in public hands (non-director) – 1,875,000,000
Current Share Price - $2
Public Float – 1.875 * $2 = $3.75bil (250 times higher than needed for Standard 3)
SH Equity – currently negative (appx 5mil for 2015) – Would need to be 4mil
Market Cap – 12.5bil * $2 = $25bil (500 times higher than needed for Standard 3)
**Worst Case Scenario - If the share price at YE was only .008, they could RS 1:250 to reach $2 per share.
**WITH A 1:250 RS (57,500,000 AS) WORST CASE SCENARIO to meet public float at $2 per share
Shares in public hands (non-director) – 7,500,000
Current Share Price - $2
Public Float – 7.5mil * $2 = 15mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 50mil * $2 = 100mil
WITH A 1:25 RS (500,000,000 AS) I used this AS because they have RS back to this number a couple of times in the past. The current share price would need to be 8 cents
Shares in public hands (non-director) – 75,000,000
Current Share Price - $2 (Would need to be orig .08 or 8 cents)
Public Float – 75mil * $2 = 150mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 425mil * $2 = 850mil
_______________________________________________________
Standard 4 – The revenue requirement is too high here
Either have $75 million in market capitalization or
At least $75 million in revenue and $75 million in assets
Public float must have a minimum value of $20 million
Share price of at least $2.
The answer to whether a RS will be needed if they want to uplist by year end is 100% due to the share price. The higher the share price the less the RS and if the share price is $2 we won't need it at all.
Below is an analysis of what Standard would be used to uplist to AMEX and the worst case scenario for a RS and if they just went back to 500mil AS which they have done a couple times. Like I said...if the share price is $2 they won't need one at all.
DEFINITIONS:
Public float - refers to shares of stock owned by the public and not by company directors, officers or controlling interest investors.
Shareholder equity - is the net worth of the company--that is, the difference between assets and liabilities.
Market capitalization - refers to the market price of the entire company. This is calculated by multiplying the number of shares in investor hands by the market price of the stock.
CURRENT:
Shares in public hands (non-director) – 1,875,000,000
Current Share Price - $.0016
Public Float – 1.875 * .0016 = 3mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 12.5bil * .0016 = 20mil
If they want to uplist by EOY then they won’t meet #1 and #2 below which requires 2 years of financials.
Standard 3 is the most likely option in that case. Unless the share price is $2 by YE they would need to do a RS. I calculated the worst case scenario below that would be needed to meet the 15mil public float at $2 per share - The shares in non-director hands would need to be at least 7.5mil. (15mil / 2 per share). I also calculated the scenario which puts them back to 500mil in AS which is a number they have gone back to a couple times in the past. But as I said…if the pps is $2 they won’t need a RS at all.
Standard 1 – Needs two years of operations
$750,000 in pre-tax income in the two most recent fiscal years
The minimum price of its stock must be $3
Public float must have a market value of $3 million
Shareholder equity must be at least $4 million.
Standard 2 – Needs two years of operations
Company must have a stock price of at least $3.
The company does not have to meet income requirements.
Public float must be at least $15 million
Shareholder equity must be at least $4 million
AMEX requires companies to provide at least two years of operating history.
_______________________________________________________
Standard 3 – Most likely scenario
Meet a minimum of $50 million in market capitalization.
Meet a minimum $15 million market value public float
A Minimum of $4 million in shareholder equity.
Share price must be at least $2.
This option would be most likely if they don’t have two years of operations and two years of profits as in #1 and #2 above.
The biggest challenge in uplisting will be shareholders equity which is Assets less Liab and is currently negative for both companies and needs to be $4mil. That would mean they would have to increase assets and decrease liabilities but that profits would be needed to do this as well in order to increase cash.
***Depending on the share price at year end I calculated a few options for a RS below.
NO RS - IF SHARE PRICE WAS $2 with Current SS
Shares in public hands (non-director) – 1,875,000,000
Current Share Price - $2
Public Float – 1.875 * $2 = $3.75bil (250 times higher than needed for Standard 3)
SH Equity – currently negative (appx 5mil for 2015) – Would need to be 4mil
Market Cap – 12.5bil * $2 = $25bil (500 times higher than needed for Standard 3)
**Worst Case Scenario - If the share price at YE was only .008, they could RS 1:250 to reach $2 per share.
**WITH A 1:250 RS (57,500,000 AS) WORST CASE SCENARIO to meet public float at $2 per share
Shares in public hands (non-director) – 7,500,000
Current Share Price - $2
Public Float – 7.5mil * $2 = 15mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 50mil * $2 = 100mil
WITH A 1:25 RS (500,000,000 AS) I used this AS because they have RS back to this number a couple of times in the past. The current share price would need to be 8 cents
Shares in public hands (non-director) – 75,000,000
Current Share Price - $2 (Would need to be orig .08 or 8 cents)
Public Float – 75mil * $2 = 150mil
SH Equity – currently negative (appx 5mil for 2015)
Market Cap – 425mil * $2 = 850mil
_______________________________________________________
Standard 4 – The revenue requirement is too high here
Either have $75 million in market capitalization or
At least $75 million in revenue and $75 million in assets
Public float must have a minimum value of $20 million
Share price of at least $2.
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