Post by
deepoil0808 on May 14, 2022 3:14pm
Payout ratios: should be 77.50.% Poda & 22.50 % Ryan....
MO has agreed to pay $ 100.5 million USD to get IP, patents and license. This works out to about $ 130 million.
With 130 million shares in circulation, those that can logically be converted, it means they paid $ 1 per share.
Ryan has determined the $ 1 per share which MO is paying is to be divided as follows:
(a) 45 cents to Ryan and partner
(b) 55 cents to Poda
They say that they have an evaluation report and I personally contest those calculations for the following reasons.
The royalty agreement which Ryan and partner have with Poda is that they get 4.5% of gross sales, note that the word is gross sales, not net sales.
In the tobacco world where you are dealing with addicts, the gross and net profit margins are lucrative.
A tobacco company can generate 20% to 25% as the bottom line on net profit.
So lets do an example so that everyone can follow:
Poda gross sales: $ 10,000,000
Net profit before royalty (20%) 2,000,000
Payment of royalty (4.5% of sales) 450,000 (4.5% * $ 10 million sales)
Net profit to Poda 1,550,000
Ryan and Poda are selling their rights to future sales and are receiving present value of these future sales which MO has calculated to be $ 100.5 million USD today or, $ 130 million Canadian.
So to know what each party is entitle to, we have to know what each party is giving up per year.
In the case above, where we have $ 2 million in profits
- Ryan and partners are giving up $ 450,000 in royalty per year
- Poda is giving up net profits after payment of royalty of $ 1,550,000
Therefore the compensation payment of $ 130,000,000 by MO should be dividend as follows:
(a) To Ryan and partner: $ 29,250,000 ($450,000/2,000,000 * $ 130,000,000)
(b) To Poda: 100,750,000 ($1,550,000/2,000,000 * $ 130,000,000)
The payout ratio therefore has to be as follows,
(1) To Ryan 22.50% ($29,500,000 given up / 130,000,000 payment)
(2) To Poda 77.50% ($100,750,000 given up / 130,000,000 payment)
UNJUST ENRICHMENT by Ryan and his partner
Per calculation above Ryan and partner are entitled to $ 29,250,000 payment out of $ 130,000,000
Instead there is unjust enrichment of $ 29,250,000 as they are collecting double to what they are entiled
They are entitled to $ 29,250,000 but are collecting $ 58,500,000 ($45,000,000 USD * 1.30)
UNJUST IMPOVERISHMENT TO PODA
Per calculation above PODA is entitled to $ 100,750,000 payment out of $ 130,000,000
Instead there is unjust impoverishment of $ 29,250,000 as they are collecting less than what they is entiled
They are entitled to $100,750,000 but are collecting $ 71,500,000 ($55,000,000 USD * 1.30)
IN ADDITION PODA PATENT ASSIGNMENT AT $ 146,000
In a video on youtube Ryan stated that PODA developped the intellectual property meaning the patent
Ryan and partner took the patent for $ 146,000 and, it was sold with others for $ 45,000,000 USD
It is a related party transaction and there is a clear violation of fundamental rights to Poda.
Poda is entitled to a large chunk of the $ 45 million USD proceeds.
There is enough cause and merit for a legal team to do its work and to confirm whether or not Poda has suffered an injustice.
My personal opinion