GREY:ISOLF - Post by User
Post by
TrendSwapperon Jan 13, 2019 2:39pm
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Post# 29225208
Chatter Regarding Kure
Chatter Regarding KureThere are numerous uniformed posts regarding Kure, some mention substantial dilution and others that we should scrap the deal. I encourage everyone to read the contract carefully to fully understand the terms and schedule of payments. First off, we are not looking at massive dilution anytime soon. The first earn out payment is due on February first, and is based on two factors; their ability to achieve revenue and our average stock price for the last 10 days of January. Before I get into the worst case scenario, it is important to understand the value here and their contribution to our current and future revenue. Each store brings in about 900K USD revenue per year - we have 12. We have also invested in the expansion of 10 more stores. Based on the terms of the payout and fridays closing price, we would issue 4 M shares on February 1st, provided they achieved 10 million revenue in 2018. That's the worst case scenario, and it is unlikely that Toba is going to let it's new investment dilute more than necessary when the only thing required to prevent it is for them to invest more at these low prices to raise the stock price. It is the smartest thing for them to do, and us long retail investors have an equal responsibility to assist in preventing further unnecessary dilution. Help the bulls and hold strong, keep averaging down, and set your shares for sale at 10+ to prevent borrowing. Let's bring this heavily undevalued company back to a price that reflects it's fundamentals and the burgeoning industry that we have embarked on. Glta!