Chalice Brands Ltd CHALF

RE:RE:RE:RE:A basic question

[Orwellian1984]

Puffdragon6969 you explain the basics as you are the only one understand it. Maybe better to improve your reading skilles. You missed it fully and it was not for fun.

The market cap is not equal to enterprise value. Also the spot price is not equal to the stock value. The question was from the stand point of a value investor. My input was also by the same approach.

The claim was simple: similar companies with much lower debts/revenue ratio and worse EBIDTA are priced 5-10x higher. Now if the debt can be paid by issueing shares, don't you think it is a good first approximation to find the fair price by comparision? 

But it is fine, assume I am wrong. Now it is your time: show how you would calculate the value of a stock with this scenario without hand waving arguments. Assume as an investor I am ready to pay $20 M to obtain 1B share at 2 cents in a private placement. What would be the fair value of the stock afterward? ( Of course I can not do it in public market as the price will jump significantly before I collect even 10% of the shares.)

Now please show me your talent in answering the above question and let set a ground for further discussion without making fun!