Shiftyone's Calculations Shiftyone:
BTW, feel free to correct me. You wouldn't believe it.. but after I got a BSC in math, I spent 3 more years studying advanced calculus. Advanced statistics. Advanced linear algebrae.
I chose those subjects because it was what I would say came easy to me. But with all the abusing myself over the last decades... if you were to show me an integral I wouldn't know what to do with it. But I will try here to relate to the math.
Impressive curriculum. But I do not think advanced maths are required: only simple calculations and basic logic is required.
Shiftyone:
DDD said.
f we plug the new numbers in the calculations I suggested earlier, the new numbers give the following calculations:
SGNL will have close to 118.9M extra shares, for a total of 373.9M shares after the deal. NEXG, now that the FT offering has been increased to 10M shares, would have a total 86.21M shares post-merge. SGNL shareholders will then add 46.51M shares (factoring in the 0.1244) out of the 132.72M shares for the newly merged company which represents 35%. At today’s NEXG's market cap of $61.73M, that represents a market cap of (If X is SGNL MC then X=0.35×(61.73+X))=$33.24M for a 13 cents share price.
Yep, I agree that this is what I said!
Shiftyone:
With the upsized and oversubscribed placement by SGNL a couple of days ago, they will be issuing 103,388,857 new shares of SGNL. At a price of .08705. Along with that, there will be over 50 million full warrants. But they will not be included in this. I'm trying to follow your explanation. (It's not explained in the most simple of terms for me).
So we plug in the numbers. (using your numbers for some)
SGNL will have 103.4 million new shares.
Well, if the objective is to valid my formula, then you would have to use the same numbers. I used 118.9M (not 103.4M) as I used the "with an option (the "Option") to offer up to an additional 15,508,328 Signal Subscription Receipts for additional gross proceeds of up to $1,350,000" from the NR in my calculations.
Shiftyone:
For a total of 373.9 million.
That's correct
Shiftyone:
Subtract 118.9 million shares as you stated. Add 103.4 million new shares as the release stated 2 days ago. 358.4 million shares as of the news release.
I do not follow the logic here, but I guess you just wanted to substract the optionable 15% extra shares.
Shiftyone:
So Sgnl has 358.4 million shares outstanding at the time of the transaction. (it could be more, but that is the latest release a couple of days ago.)
NEXG will have 86.21 million shares (not post merge, but immediately prior to the merge, after the financing.)
That's correct. We can use "post-financing" instead of post-merge from now on to be more precise.
Shiftyone:
Sgnl will add 44.58 million shares to that. (358.4 million * 0.1244).
Well, no as my calculations are using 373.9M so the correct amount is 46.51M.
Shiftyone:
So the total number of shares in the new NEXG will be 86.21 million. Plus 44.58 million. That is the new NEXG will have 130.79 million shares. (I did that one in my head, so it could be wrong)
Using my numbers, it's 86.21M + 46.51M = 132.72M as stated in my original post.
Shiftyone:
So new NEXG has 130.79 shares.
No, 132.72M shares
Shiftyone:
So SGNL will own 44.58 millon out of 130.79 million shares. That is 34% of the new company.
46.51M out of 132.72M meaning 35% (still the same numbers than my calculations).
Shiftyone:
Using your OCT 15 numbers, NEXG should have a market cap of approximately $62 million, plus the $8 million they raised, for $70 million market cap.
OK, I see now where you differ from me. You're including the $8M in NEXG market cap. I guess we can debate on this but in my formula, I did not want to include any speculation about what will happen on the markets post-financing AND post-merge. The market capitalization of a company is calculated from the formula "Number of Shares times Market Share Price" where the result of a financing, even if it's using kind of the same elements (but in a financing deal context), will be added to Assets in the books, not to market capitalization of the company. So I think you should not add this $8M if you want to keep/validate the objective of my formula. Aside from not denaturing what is a market capitalization according to finance world, not adding the $8M makes sense as this amount will be incured to exploration/development (these are coming from FT shares, in other words future expenses) so there is a possibility that the money spent could be for nothing if they do not discover any new gold or if they do not improve the resource and/or the confidence level of the ore body model. If that happense, it's logical to think that NEXG MC might go down, not up.
Shiftyone:
that represents a market cap of (If X is SGNL MC then X= 0.34×(70.00+X))
X= 21 + .34X
0.66X = 21
(X=21/0.66) = 31.81 (million)
So X being SGNL share of the new company.
$31.81 million, divided by 358.4 million shares.
That equals 0.0887 cents per share.
We are following he same process, but just coming up with numbers that differ by a lot. What am I doing wrong with this calculation?
I worked dilligently, step by step, piece by piece in assessing your suggestion and my conclusion is that we are not using the same process. You were not using the same numbers than me (I was using the total shares after the 15% option) and you did add the financing amount as part of the market capitalization (which is wrong according to what is a market capitalization).
Shiftyone:
You say 0.13 cents a share. My math says 0.0887 cents a share. Which is about the price of the SGNL financing, so that part makes sense to me.
PS. Sgnl has the option to sell another 15 million shares, which will mean they have over another $million dollars to contribute to the new company. But the numbers don't change much.
Yes I'm aware as that's the option I used for my calculations.
Shiftyone:
And don't forget... the 6% finders fee will take away about a million in value from the company.
You are right but that will be shared by shareholders of the merged company and NEXG former shareholders will pay 65% to 70% of it! There are some advantages of not getting the biggest part of the company after all!
Shiftyone:
Thanks.. I like when you question me. I learn. And I like when you respond to my questions to you as well.
Well, I now think it was kind of another attempt to discredit me instead of challenging my formula/objective but hey, I'm glad if you learned from it!