Technologies Sonomax Inc SXHHF

Today's announcement

[Ceilidh1]

If I understand this correctly, ValueLink is paying $10M and getting 51% of the IP and 100M shares worth $2M at .02 which will be 20% of the total of 481M; this infers the value of 51% of the IP is $8M.  It appears to me that ValueLink is their present mfr in Tiawan which seems to be vertically integrated in terms of leveraging their IP portfolio by providing services to OEMs. etc. They will license the IP exclusively to Sonomax. This means that they have "skin in the game" on the same basis as other shareholders and believe they can increase the stock price via sales, etc. They are paying $8M to gain some control over the licensing process as they have the contacts in Asia. They are expecting to recover their $10M and more through gains in the share price. There are no royalties involved; Sonomax makes sales and pays expenses, keeps profits, etc and ValueLink are shareholders. It doesn't say if Sonomax has to pay a licensing fee to them.

I researched MADE Global when that announcement came out and their subsidiary is Eyelevel Interactive which is a rapidly growing mktg firm using latest technology to bring about sales. They only get shares if they get sales and we don't know at what price they can buy the shares. It could be that we end up with both MADE Global and ValueLink having 20% each of the shares along with the other institutional owners and things could get very interesting. I believe this could be very positive although saddened that that they sold the 51% for so little but given the share price they perhaps didn't have any choice.  I see they are participating in the Black Friday push so I look forward to seeing what will happen.  We should have quarterly stmts soon. I too have been sitting with shares for a long time.