Assuming that the new Series A Convertible Preferred shares are converted into 1,677,000 shares of common stock, ADDN would have 5,801,419 common shares outstanding. Note that the 5,395,320 common shares referenced in my post #5 was in error. Based on Friday's closing price of $3 per share, that works out to $17,404,257.
Additionally, certain of the old Aladdin shareholders received 1,088,500 Class A warrants, each warrant entitling the holder to purchase one share of common stock at $1.50 per share and 1,688,000 Class B warrants, each warrant entitling the holder to purchase one share of common stock at $1.00 per share. Based on Friday's closing price of $3 per share, these warrants have a value of $5,008,750.
Based on Friday's closing price of $3 per share, the holders of the convertible debt have seen their $417,600 appreciate by $2,061,900.
Essentially, ADDN is being valued at approximately $24.5 MM, which is rather excessive when you consider that the Los Angles basin properties were valued at only $1.5 MM and the proved reserves of the Ohio wells have a net present value of less than $350,000.
The only thing propping up this stock is the fact that the float is virtually nonexistent. I don't know the real value of the Los Angles basin properties. If greater than $1.5 MM, it is curious that this fact was not disclosed. If any prospective investors look closely at this company, it is going to be very difficult to raise the $5.0 MM needed to "commence" drilling. The above is JMHO. |
