"payment, will be distributed proportionally to all registered IKAR-shareholders. For example: an IKAR-shareholder, who owns 5 percent of all issued IKAR shares will receive 5 percent of the six million and six hundred thousand convertible preferred EPAR-shares, which represents the stock-portion of the purchase price. These shares are non-voting preferred shares with a right to dividends only, if and when declared by the Board of Directors of EPAR."
Has jack sold the cow for a handful of beans?
With the total outstanding shares of IKAR at 16,300,000, and the total number of convertible preferred shares transferred being 6,600,000, each share of IKAR will reap about .405 share of a EPAR convertible preferred [The PR did say that these were warrants, but I am assuming that they are.]
IKAR closed .38 today and EPAR closed at 1.68 - the convertible preferred have a par value of $6.00 and a strike value of $6.50 {about 300% above the current price}.
So, if you are holding 10,000 shares of IKAR, you will have the right to purchase about 4,050 shares of EPAR stock currently worth $6,843 for the sum of $24,295.
The other option is to wait until EPAR does a "triple bagger" and then convert at no cost.
Finally, it looks as if the balance of the deal is $250,000 in cash to IKAR - [since 6,600,000 x 6.00 = $39,600,000 + $250,000 = $39,850,000]
Any thoughts, or comments? |
