RE:104 million reasons to keep $proutly going....Thanks for the compliments all. Like many of you I believe in this technology and I believe in my assessment of its potential along with my judgement on Arup Sen as an honest individual with a desire to produce a product that helps society while making him rich in the process.
Rightfully so there are lots of questions about the debt will be addressed by October. I do not have all the answers, but I can paint a picture of what I am seeing from the latest set of financials offered by $PR.....
This time let's start with the share structure of the company as of August 31st, 2020
| Common Shares | 261,819,355 |
| Options | 20,337,311 |
| Warrants | 13,484,319 |
| Convertible Debenture Units | 49,895,238 |
| Broker Convertible Debenutre Units | 1,182,498 |
| Broker Equity Warrant Units | 1,586,631 |
| Fully Diluted | 348,305,352 |
Let's break it down line by line
Options
- Over 6 million of these options are due after March 25, 2027
- If any of these cash in we will all be happy as the share price would be up
Warrants
- IBS received 26,500,000 warrants from the $1,855,000 million in recent financial raises
- There are only 13,484,319 outstanding warrants suggesting IBS cashed 13,015,681 @ 8 cents for proceeds of $1,041,254
- This would up the total IBS re-investment to $2,996,254
- When they cash the remaining Warrants total IBS re-investment will be $4,074,999
- 90% of the cash IBS recieved for the rights to APP will be re-invested into $PR
Convertible Debenture Units
- 78,571,418 CD's were outstanding as of April 24, 2020
- The $1 million raise added 14,285,714 Convertible Debentures
- The $855k raise added 12,214,286 Convertible Debentures
- Total Convertible Debentures issued -105,071,418
- Total Convertible Debentures outstanding as of August 31, 2020 - 49,895,238
- I would speculate that 55,176,180 convertible shares have been converted into shares and sold since April 24th
- IBS could account for as much as 26,500,000 of these CD's as they likely cashed in the loans in exchange for shares and are holding those shares
- That tells us that our debt holders have disposed of at least 28,676,180 shares
- The debtors still hold 49,895,238 CD's which translates to $5,239,000 in remaining debt to chew through
Broker Convertible Debenture Units
- These ones I am unsure of their status
- They have an attached value of 65 or 75 cents,
- Have a due date of October 24th
- Account for about $1 million of the debt owed in October
Broker Equity Warrants
- Attached Value of These have a value of $0.90
- An expiry date of October 24th, 2020
- They will not be cashed in at current levels
Current debt coming due in October is around $9.5 million
- $5,239,000 due to the holders of Convertible Debentures
- $1,855,000 due to IBS for 2020 loans
- $1,000,000 Broker Convertible Debentures
That accounts for over $8,000,000 of the $9,500,000 in debt due this year. With the age of these financials I am sure there some other pieces to the puzzle I am not seeing, but it gives us an idea of what financial roadblocks remain in the way of $proutly's success.
This is just my best guess at what I am seeing, I am not a financial expert by any means, I just like simple math and weed. That combination has lead me to a fascination on the birth of this industry and focused me in on $proutly as one of the keys to the industries mainstream acceptance. I am definitely bias as I want to be right for financial and personal use!
If I am off with any of these numbers please don't hesitate to call me on it.