Current Price – $0.03
Offer Price – $0.05 (for holders of up to 3.38m shares)
Upside – 67%
Expiration date – TBD
Note – Due to low liquidity it is not clear how actionable this idea will be.
The Transaction is a reverse split of our common stock whereby each 3,384,409 shares of our common stock will be converted to one share of our common stock, with holders who would otherwise receive a fraction of one whole share after completion of the reverse split receiving cash in lieu of fractional interests in an amount equal to $0.05 per share for each pre-split share that becomes a fractional interest. CEO owns 96.5% of the outstanding shares, so it is very likely this transaction will go through.
The Transaction has been approved by the Special Committee and the Board. No vote of our shareholders is required to effectuate the Transaction.
Source of Funds:
The following is an estimate of the costs that we have incurred or expect to incur in connection with the Transaction, but does not include the cost of the aggregate cash payment to shareholders who will be cashed out in the Transaction, which we estimate will be approximately $175,000. We expect to pay the estimated costs, including the amounts to be paid to shareholders who will be cashed out in the Transaction, out of our currently available cash