*#*#*#* OSCR/AMMN DEAL: Explanation and Benefits *#*#*#*...
1) Outstanding shares of AMMN: 20 Millions post-split with 60% or 12 Millions going to OSCR... In addition, a further 2 Millions Private Placement shares are issued at $12.50 each (value $25 Millions) for a total of 22 Millions.... Float indication is 2 Millions shares, which should provide some lively trading...
2) This transaction puts a value of $150 Millions on OSCR stakes, which becomes an ASSET for the purpose of filing for NASDAQ and based on 16.8 Millions outstanding, represents a value of about $9.00/share, excluding the other Telecom Assets...
3) The two businesses being very different required specialized Management with specific skills and had different financing requirements... It seems reasonable to assume that each Business will grow faster on its own and will benefit from the additional financing provided: $5 Millions for OSCR and $20 Millions for Shopss.com...
4) CONCLUSION: Since the Telecom Assets produced 14 Millions in Q3 earnings, while those Assets just merged yielded $6 Millions, if the whole Company was valued on the basis of this deal, OSCR shares would be worth approximately: 20 Millions divided by 6 Millions, times $9.00 equals $30.00/share.... Yet, the stock still trades under $4.00!!
All in all this appears to be quite a Good Deal for all concerned, as we can expect a surge in OSCR share price... In addition, IF the Dividend is 1 for 5, as previously suggested, one will receive 1000 AMMN for every 5000 OSCR which are expected to start trading around the $8.00 to $10.00 mark and logically rise to and probably surpass the $12.50 level...
Regards, F. Goelo + + +
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