TEKMODO INDUSTRIES INC RTS V.TEK.RT

Math

[jevs]

If you already had the rights and take full advantage of them you will end up with post consolidation shares at .05 cents.  If you buy shares on the open market now at .02 cents you will end up with post consolidation shares at .05 cents.  If you buy the rights now on  the open market at .005 cents and take full advantage of them you will end up with post consolidation shares at .0375 cents.
The rights at .005 cents are quite a deal!

jevs

[KingBill]

Even if you buy @0.01, it is still worth in some measure:  You will have 1 option (buy @0.063 post consolidation in 5 years) and also 1 share (cost @0.0375 post consolidation)

[jevs]

Sorry 'bout that!  I made a mistake.  If you are buying the rights for .005 cents you will end up with post consolidtion shares at 5.625 cents.  So you are better off buying shares on the open market at .02 now.

[KingBill]

Sorry but I do not quite get your calculation.  If you buy the rights @0.005 and exercise it now, after consolidation you will end with 1 option (cost @0.005 and expire in 5 years) plus 1 share with cost 0.0375 ($0.015*2.5=0.0375). So I think your original calculation is correct.

[jevs]

I thought so at first as well but I missed something. We are talking about three dirfferent things, Rights, Units and Warrants.  Even if you buy a right at .005 today you will still have to pay the company 1.5 cents for a unit.  Each unit gives you one share plus one warrant allowing you to buy another share at 2.5 cents.   .5       cents to buy a right 1.5  

[jevs]

I see what you are saying KingBill.  I wasn't sure if you could just buy a unit from the company for the 1.5 cents or if you also had to pay for the warrant at the same time which would cost you another 2.5 cents up front.  If the warrant is paid for at some later date, or even ignored completely and left to expire and you end up not paying for it at all, then you're right.  

[mitch0french]

But , you don't help the company financially and it don't help to boost the price of your shares in the near futur .The Cie need this money , and as MR. Buffet say , when you invest in a Cie , you are a partner of this company.(if you are an investor,i don,t know) Does it make sens or not ?????

[BigBalzac]

I look at it this way as an opportunity. The stock is currently trading at 0.02. If I owned, I would sell all of my position at 0.02 and buy the rights for 0.005 (and convert to units at 0.015), so realizing the same effective 0.02 price per share PLUS getting the WARRANTS (as a no cost option to go along with it). The post consolidation math is just a multiplier/divider that applies to all shares

[KingBill]

100/100

[masfortuna]

Yes until it drops to .015 OR lower.  Then you lose...

[KingBill]

That is true. It all depends on if the management can bring sp back to $0.025+ or 0.0625 post consolidation. As some institutions were devouring most rights in the last 2 days, I would give it one last try.