As you note, the company has 24,423,477 shares outstanding. However, there is also $100,000 of convertible debt that is convertible into 5,000,000 shares. Also a warrant for an additional 1,000,000 shares at $.025 per share. That gives you a total of 30,423,477 shares. At $.18 per share, the shell is being valued at approximately $5.5 MM. Very pricey for a shell. You are probably also facing some significant dilution from the reverse merger and a reverse split.
From the Form 10-K:
sec.gov
On September 22, 1997, the Company entered into a Debt Agreement with the Wolas Family for $100,000. The terms of the Debt Agreement are 10% interest payable in stock on a quarterly basis (125,000 shares per quarter - based on 2 cents per share). The debt can be paid in full or be convertible to equity, based on 2 cents per share (5,000,000 shares - on the 22nd of September, 2000 at the election of the Wolas Family). The Wolas Family also have a warrant to purchase 1,000,000 shares of common stock for $25,000 on or before the 22nd of September 2002, being $0.025 per share. See Note 2 of the Financial Statements. |
