Ortsbo Math Calculation of Dividen Here is an Article that I found witten by Frank Tabbert dec 8 2011:
There has been a lot confusion concerning the 20% ORTSBO stock dividend INT. shareholders will receive when ORTSBO is spun out from Intertainment Media Inc. Ortsbo's value is worth more than all of INT's combined assets and the plan is to spin ORTSBO off and apply for a listing on senior American and Canadian exchanges. I assume NASDAQ and TSX. To reward shareholders or a better word would be to compensate shareholders of INT. The company plans to pay a ORTSBO stock dividend to INT shareholders from the proceeds of the initial public offering. INT will keep 80% as an investment in ORTSBO and INT shareholders get 20% by way of a stock dividend in ORTSBO. Becausae listing requirement will require a higher share price, likely $5.00 or more, many shareholders think they will make out like bandits.and assume that if they have 100,000 shares of INT they will receive 20,000 shares of ORTSBO and that would be the case if INT shares were trading at $5.00 as well which is not the case,currently trading under 50 cents. The math according to Frank (not cast in stone) is as follows: Suppose you have 100,000 shares of INT at the time of the transaction date and the shares were worth one dollar each or $100,000.00. 20% of that equals $20,000.00 If the ORTSBO IPO price is $5.00 per .share $20,000.00 worth will buy you 4000 shares and not 20,000 shares as some people are assuming and you can reduce that by half again if INT shares remain at their current price.My guess is that there will be efforts made to get INT's share price much higher to sweerten the numbers and another reason to consider taking a position.in INT. With INT being the major shareholder of the new NASDAQ company, INT night just qualify for a NASDAQ and TSX listing as well. Remember, these thoughts and calculations are my own as an ordinary investor.
What are your thought? is this correct or make sense?
Kokomak