$UNSS/Entrex Monster Merger.. Let's look at UNS
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Posted On: 12/04/2019 9:16:51 AM
$UNSS/Entrex Monster Merger..
Let's look at UNSS Share Details:
Par Value: $0.01 (per 10/22 8K; trading for 1/2 par value)
OS as of 4/14: 600m
OS as of 11/1: 600m (unchanged)
Insiders own 46% of the common shares
There are no Preferred shares, merger taking place in commons (Huge)
Assets (A/R): $23 million
Liabilities: $19,000 (one loan for $25,000 only drawn on once since 2016)
NO TOXIC CONVERTIBLES
Traded at $0.18 6 months ago, almost same share structure
A little more on Entrex:
- Merger is Defintive Agreement (done), not a LOI
-Watkins PR just added to the BOD of UNSS:
http://entrex.net/Entrex%20downloads/11-2019%...0Board.pdf
2 sites list revenues from $26-$32 million:
https://www.owler.com/company/entrex
https://www.zoominfo.com/c/entrex-inc/23874192
Company Management Team (look at their backgrounds):
http://entrex.net/leadership.html
Valuing the new entity:
Quote:
Entrex shareholders will receive 20% of the joint ventures revenues up to $31,000,000 distributed on a monthly basis and will own 40% of the equity of the entity. Universal will invest $4,000,000 in cash for 40% of the joint venture founding equity. Stephen H. Watkins, CEO of Entrex, is expected to join the UNSS Board of Directors. Universal also has a minimum buy-out option which allows it to purchase all remaining equity holders shares based on a minimum of 11.6 times a minimum trailing twelve-month EBITDA of $15,000,000 - resulting in a minimum enterprise value of $174,000,000. This valuation is expected to be 15% below market comparables providing Universal an estimated $30,000,000 in additional market valuation when and if the option is exercised.
The planned enterprise value is to be $174m, which is even a better gauge than just straight up market cap because it includes in its calculation the market capitalization of the company but also short-term and long-term debt as well as any cash on the company's balance sheet.
All estimates I am coming up with would/should value this at ~$0.05 minimum for starters. When you calculate Entrex shareholders are getting 80-90% new commons (again no preferreds, they are getting commons) that would value this at $0.0055 at about $6 million. Also how many times do you see a merger where the original shareholders are getting ~50% of the incoming company, usually it's 5-10%. Positive as well as commons are 46% held by insiders and the new shares will most likely be restricted for a while.
One time sales at the new SS would place this at $0.03, add in the new companies enterprise value of stated $174 million places this anywhere from $0.05-$0.15 for starters. Adding here as more $ is freed up. Ticker is still unknown on Ihub as there are only 40 some followers. That will change soon imo
Let's look at UNSS Share Details:
Par Value: $0.01 (per 10/22 8K; trading for 1/2 par value)
OS as of 4/14: 600m
OS as of 11/1: 600m (unchanged)
Insiders own 46% of the common shares
There are no Preferred shares, merger taking place in commons (Huge)
Assets (A/R): $23 million
Liabilities: $19,000 (one loan for $25,000 only drawn on once since 2016)
NO TOXIC CONVERTIBLES
Traded at $0.18 6 months ago, almost same share structure
A little more on Entrex:
- Merger is Defintive Agreement (done), not a LOI
-Watkins PR just added to the BOD of UNSS:
http://entrex.net/Entrex%20downloads/11-2019%...0Board.pdf
2 sites list revenues from $26-$32 million:
https://www.owler.com/company/entrex
https://www.zoominfo.com/c/entrex-inc/23874192
Company Management Team (look at their backgrounds):
http://entrex.net/leadership.html
Valuing the new entity:
Quote:
Entrex shareholders will receive 20% of the joint ventures revenues up to $31,000,000 distributed on a monthly basis and will own 40% of the equity of the entity. Universal will invest $4,000,000 in cash for 40% of the joint venture founding equity. Stephen H. Watkins, CEO of Entrex, is expected to join the UNSS Board of Directors. Universal also has a minimum buy-out option which allows it to purchase all remaining equity holders shares based on a minimum of 11.6 times a minimum trailing twelve-month EBITDA of $15,000,000 - resulting in a minimum enterprise value of $174,000,000. This valuation is expected to be 15% below market comparables providing Universal an estimated $30,000,000 in additional market valuation when and if the option is exercised.
The planned enterprise value is to be $174m, which is even a better gauge than just straight up market cap because it includes in its calculation the market capitalization of the company but also short-term and long-term debt as well as any cash on the company's balance sheet.
All estimates I am coming up with would/should value this at ~$0.05 minimum for starters. When you calculate Entrex shareholders are getting 80-90% new commons (again no preferreds, they are getting commons) that would value this at $0.0055 at about $6 million. Also how many times do you see a merger where the original shareholders are getting ~50% of the incoming company, usually it's 5-10%. Positive as well as commons are 46% held by insiders and the new shares will most likely be restricted for a while.
One time sales at the new SS would place this at $0.03, add in the new companies enterprise value of stated $174 million places this anywhere from $0.05-$0.15 for starters. Adding here as more $ is freed up. Ticker is still unknown on Ihub as there are only 40 some followers. That will change soon imo
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