KSIX Media Holdings, Inc. (KSIX) is an SEC fully reporting media and Internet company undergoing dramatic and valuable restructuring with the planned acquisition (see press release) of a profitable telecom company, True Wireless LLC.
In the past 9 months of operations, True Wireless has generated $8.75 million and $2.4 million of net income.
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Current shares outstanding: 46 million
Closing price 10/25/2016: .16
Market Capitalization: $7.4 million
True Wireless LLC (web site) is a telecommunications carrier that provides discounted and subsidized cell phone service to those who qualify. The company provides government sponsored/ supported cell phone service in Texas (TX), Oklahoma (OK), Arkansas (AR), Maryland (MD) and Rhode Island (RI).
The service is subsidized under the Federal Communications Commission Lifeline Program for Low Income Consumers. The Lifeline program is available to eligible low-income subscribers in every state, territory, commonwealth, and on Tribal lands.
Tentative deal terms include:
1) Cash payment of up to $6 million through a debt instrument
2) A promissory note of $6 million
3) The issuance of common stock in KSIX totaling 24 million of shares of common stock
Management anticipates having approximately 75 million shares outstanding post close of the transaction.
As of yesterday’s close, the post-acquisition market capitalization for KSIX is just $12 million, assuming 75 million shares outstanding.
Considering the acquisition is for a company with nearly $9 million in sales and $2.4 million in net income during just the last 9 months, look for shares to climb much higher.
We will be keeping subscribers updated on developments as they arise.