Tangelo Games Corp. IPRSF

Technology Electronic Gaming & Multimedia

"Tangelo Games Corp is engaged in developing and selling social casino games. The company primarily designs, develops and distributes social casino-themed games within online social networks such as Facebook, Mobile platforms, Portal and other. It derives revenue through the in-game sale of virtual coins most of it is accounted through Facebook."

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Tangelo Games Corp. > Consolidating sector

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Comment by lscfaon Sep 21, 2017 10:07pm

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Post# 26728940

RE:RE:RE:RE:Consolidating sector

p.s.s.....

Ebitda Margins

NYX

28.7% Q2

28.6% H1

GEL

26.8% Q2

26.9% H1

lscfa wrote: p.s. NYX has $515 mil of debt & pref shs. vs. the $260 mil equity .......

lscfa wrote: NYX is being acquired for about 11x ebitda so my previous calc of fair value stands.....

Assume transition to mobile increases yearly ebitda from $10 million to $15 million

using a multiple of 10x => $150 mil enterprise value

$150 mil + $4.5 mil cash - $88 mil debt = $66.5 mil equity value

$66.5 mil / 220 mil shares = $0.30 per SH.

Alternatively…..

Get rid of debt $88 mil / 0.10 = 880 mil shs + 220 mil = 1100 mil shs.

Ebitda of $15 mil becomes net income (~ $50 mil in tax loss carryforwards)

15 P/e => $225 mil value or $0.20 per sh

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180 mil shs o/s

40 mil wrts/options in money ($2.5 mil cash from proceeds)

220 mil total

$2 mil cash

$2.5 mil exercised wrts/ops

$4.5 total cash

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