Jun. 10 at 11:04 PM
$VRME Let me work through the math. With roughly 9:1 dilution as part of the OpenWorld deal, the share count would increase to around 170 million shares. On your numbers of
$1.40, that implies an enterprise value of nearly
$240 million. If the stock stays where it is, that would still be around
$120 million. If it goes lower, well, you get my drift.
If the stock price is below
$1 at the merger, expect a reverse split. OpenWorld would hold approx 87.75% of the post-merger stock, and Maxim would hold 2.25% of the total post-merger stock. Based on today’s pre-merger share count, that means Maxim would own nearly one-third as many shares as are currently outstanding.
Bottom line: this deal looks bad for existing stockholders, but great for Maxim and management/the board. I don't see your
$1.40 as realistic on the math.
