As I understand the LOI: 1. SeD will pay off
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(Total Views: 526)
Posted On: 03/05/2017 6:01:59 PM
As I understand the LOI:
1. SeD will pay off all AMBS outstanding secured debt and convertible preferred equity securities
2. When they make the first tranche of $500k bridge financing, SeD will be entitled to appoint two directors (eventually will total six) to AMBS BOD. They will also install their own interim CFO.
3. SeD will then acquire some assets that they will then turn around and sell them to AMBS for considerations of shares in the AMBS.
What does SeD get in return? They will have control or near control of the company. Short term, they are guaranteed (BMI & D&D) already of about 38 m shares in consideration for services and repayment of $22k in loans.
What does it mean for us? Prior to acquisitions of assets and clean balance sheet, if we assume a valuation of $50 m to 75m @120m outstanding shares comes to 0.42 to 0.62 cents per share, UNLESS, the $225k is paid back with AVDX stocks. In that case perhaps 0.49 to .75/ share. However, once they finalize the agreements ,we will be asked to approve the increase of authorized shares in order to pay for the new assets.
The LOI is a base to a final agreement and may look totally different in the end. This is my two cents, I would appreciate everyone's input.
1. SeD will pay off all AMBS outstanding secured debt and convertible preferred equity securities
2. When they make the first tranche of $500k bridge financing, SeD will be entitled to appoint two directors (eventually will total six) to AMBS BOD. They will also install their own interim CFO.
3. SeD will then acquire some assets that they will then turn around and sell them to AMBS for considerations of shares in the AMBS.
What does SeD get in return? They will have control or near control of the company. Short term, they are guaranteed (BMI & D&D) already of about 38 m shares in consideration for services and repayment of $22k in loans.
What does it mean for us? Prior to acquisitions of assets and clean balance sheet, if we assume a valuation of $50 m to 75m @120m outstanding shares comes to 0.42 to 0.62 cents per share, UNLESS, the $225k is paid back with AVDX stocks. In that case perhaps 0.49 to .75/ share. However, once they finalize the agreements ,we will be asked to approve the increase of authorized shares in order to pay for the new assets.
The LOI is a base to a final agreement and may look totally different in the end. This is my two cents, I would appreciate everyone's input.
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