Hey WNC, I just thought I'd throw out my earlier
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Posted On: 07/15/2017 8:04:46 PM
Hey WNC, I just thought I'd throw out my earlier rendition as to how things might, maybe, could play out if the merger premium does come to fruition. As I posted a couple of weeks ago I thought something like the following might come pass.
Three things have really struck me recently in the blogs: 1. We're told that the 57.5% for HHSE s/h in the merger exchange will be larger; 2. There will be investment by some of the entities in China; 3. The new entity would like to be traded on NASDAQ. So how might that play out?
The current market cap of CRIM is $39.76mm and that of HHSE is $24.00mm (and there was virtually now trading today, July 3) and so I equate those as being nonsense numbers because of the non-trading of CRIM. But, if I assume those are real numbers, then it might be possible to value the combined MCap at about $64mm and the HHSE s/h are assigned say 60% (vs 57.5%) and so our shares now have a value of about .05 per share. Big jump if it doesn't get walked down.
So then, if the China entities look to the long term (and they usually do), they might be willing to invest and raise the price of the stock for strategic reasons. And that price could be to any level, but let's say they took it to $.25 per share. Now, that makes for some interesting options.
Since a NASDAQ listing usually requires a stock to be trading in the $4.00 per share range (Yes, I know that there are exceptions which I'll disregard for now), how do you raise a two-bit stock to four bucks. Wellllll, how about a reverse split of 1 for 20 - this raises the per share price to $5.00 per share. Now RSs are usually bad, bad, bad. But in this case, and again, for strategic reasons it might be just the thing to get the snowball rolling downhill, gathering speed and increasing in size.
Read More: https://investorshangout.com/post/view?id=464...z4mwq3UYxD
Any thoughts from the board would be welcome. GLTA
Three things have really struck me recently in the blogs: 1. We're told that the 57.5% for HHSE s/h in the merger exchange will be larger; 2. There will be investment by some of the entities in China; 3. The new entity would like to be traded on NASDAQ. So how might that play out?
The current market cap of CRIM is $39.76mm and that of HHSE is $24.00mm (and there was virtually now trading today, July 3) and so I equate those as being nonsense numbers because of the non-trading of CRIM. But, if I assume those are real numbers, then it might be possible to value the combined MCap at about $64mm and the HHSE s/h are assigned say 60% (vs 57.5%) and so our shares now have a value of about .05 per share. Big jump if it doesn't get walked down.
So then, if the China entities look to the long term (and they usually do), they might be willing to invest and raise the price of the stock for strategic reasons. And that price could be to any level, but let's say they took it to $.25 per share. Now, that makes for some interesting options.
Since a NASDAQ listing usually requires a stock to be trading in the $4.00 per share range (Yes, I know that there are exceptions which I'll disregard for now), how do you raise a two-bit stock to four bucks. Wellllll, how about a reverse split of 1 for 20 - this raises the per share price to $5.00 per share. Now RSs are usually bad, bad, bad. But in this case, and again, for strategic reasons it might be just the thing to get the snowball rolling downhill, gathering speed and increasing in size.
Read More: https://investorshangout.com/post/view?id=464...z4mwq3UYxD
Any thoughts from the board would be welcome. GLTA
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