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In consideration for the Merger, the holders of Trafficlogic common stock and options will receive 17,500,000 shares of common stock of the Registrant, representing approximately 50.36% of the shares of Registrant after giving effect to the Merger, and the sale of shares in the PPO.
In consideration of the Merger, the holders of Registrant's common stock will retain 14,000,000 shares of common stock representing approximately 40.29% of the shares of Registrant after giving effect to the Merger and the sale of shares in the PPO.
In consideration for the PPO, after giving effect to the Merger, and the sale of all the shares in the PPO, the investors in the PPO will own 3,250,000 shares of common stock of the Registrant representing approximately 9.35% of the shares of the Registrant.
The total shares outstanding after giving effect to the Merger and the sale of shares in the PPO will be 34,750,000 common stock of Registrant. All share numbers and percentages are on a diluted basis.
...Registrant will have closed a private placement offering (a "PPO") whereby Registrant will offer and sell 3,250,000 shares of the Registrant's common stock at purchase price of $1.00 per share.
...In consideration for the Merger, the holders of Trafficlogic common stock and options will receive 17,500,000 shares of common stock.
So - am I reading this right? On paper, it's worth $17mil?
All told, I think the valuation is 34 million.
More info [sec.gov]
That's all I know right now.
They made 10 million profit this year and expect to make 20 million next year.
I believe it. I just recommeded a client to signup with them for a CPA based deal. It makes sense for my client and InfoMedia is making some good money. Multiply my 1 client by hundreds or thousands of clients & you start talking about some real money ;)
The issue I have with them is that the 2nd, 3rd, or 4th customer they bring on for a specific keyword may not get the results for the deposit they are putting up. Google SERP will return only the top two results from AI. Yahoo SERP will return mutliple results on the first page.
Example: Las Vegas Widgets - right now our AI listing has 4 of the top 10 results for this SERP in Yahoo. When we had the Google SERP this summer, we were limited to the 2 of 10 organic listings.
Clients that will come in and buy a campaign based on Las Vegas Widgets will not rank higher than the first sponsor for a SERP. The older content will have the edge (after the freshbot effect) and the new clients, I believe, IMHO, will not see the results that their current clients have.
Can you sustain the growth of a company when you are completely dependent on Google, Yahoo, and MSN for their organic results. That's the most valuable territory and that's what we're all fighting for.
Also, a lot of the revenue comes from selling content to advertisers for their own websites, which pretty much opens up the universe in terms of market share. There is a subscription based model which allows advertisers to continually add more fresh content to their site.
Articleinsider is the content network, but the professional copywriting service opens up their service to every business with a website who needs more content for their site. The business model is not dependant on articleinsider or search engine traffic. There are no plans to buy other properties at all right now.
In my opinion, there is little difference between this model and About.com's model. If the content ranks high in the search engines, it does so on its own merit. About.com also has listings all over the search engines, but they have good information there so it makes sense that they would be since thats what people are looking for.
I agree that there are risks, but there are risks with any business. Have to take a few risks to succeed. The key is minimizing the risks. So... you diversify revenue streams, research new revenue streams, maximize current revenue streams, etc. The majority of all startups fail. The way I look at it, we got past one hurdle. Now we face another. The best any business can do is put together the best possible team they can to face the challenges they'll meet.
All businesses have two options; success or failure. The degree of that success or failure is generally dependent upon the expertise and determination of the people involved and their desire to continuously make improvements. In this case, the public will be the ultimate judge. The only certainty is that the success or failure, will be public knowledge. ;)
I'm counting on success. Not just for me, but for the hundreds of other people employed by the company. In a year, I guess we'll all know how it comes out. :)