Ann: Release of Shares from Escrow, page-39

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Merchant2000

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13/07/22

19:19

Post #: 62521603
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Originally posted by mondyinvest: ↑

Hi 82, to me the point @qqqqqqqqq is making here is that the shares were issued at a price far above what the Invigo business was really worth:

$8,110,056 consideration for Invigo Pty Ltd via issue of 132,951.740 shares now worth $1.7m (1.3c share price)Contributed $647k of revenue from July 2021 - December 2021 to SPX group for 133m shares dilution.

I understand @PRD2427's point that it was all agreed on by shareholders at the time (so why question it later?) but in reality that simply shows that the vast majority of Cirralto/Spenda shareholders did not have enough experience to know to question how Invigo was being valued - or indeed how CRO was being valued at the time either (I think back then it was trading around 6-7c which represented some crazy price/sales multiple close to 125x or higher). This was not helped by all of Adrian's pumpy rhetoric at the time either.

So, despite the steep fall in share price since then, even now at 1.2/1.3c there's every possibility that this is still a rich valuation for Invigo. As a very rough analogy, I guess it's a bit like me owning an apartment worth $900,000; to buy it, someone offers me $8.1M worth of shares in a company, escrowed for 12 months. One year on my shares have fallen ~80% but if I sell them today I'm still getting $1,700,000 (for an asset worth $900,000). So people thinking that the Invigo vendors are sitting on a loss are mistaken, in my personal opinion. They swapped their business for shares, and those shares are still worth seven figures cash. But is/was the business ever worth that much?

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They swapped their business for shares, and those shares are still worth seven figures cash. But is/was the business ever worth that much?

So it may be very possible that the 50m could hit the market from the 23rd July

imo and dyor

SPX Price at posting: 1.2¢ Sentiment: None Disclosure: Not Held
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