Hey Shaffer....
To keep things in perspective, LLSR (the parent company) has two subsidiaries in LLSR and TAG Minerals. There are a lot of benefits to the shareholders in this merger:
1. LLSR (subsidiary) is still 2-3 years from transitioning into production with OCT and NIR. We last left off the story line with LLSR having to continue beta unit development. At that time as I recall, Axsun was still developing their OCT chip set. Fast forward to the present, we have to imagine that Axsun has completed their OCT chip set with a number of new iterations over this same time period. Other non-dental OCT applications must have supported the need for the development as the cardio OCT market has moved forward and the original player has been in production for 8-9 years? Volcano acquired Axsun so the OCT engine chip set must have had traction.
The milestone:
1-3 board spins to tool the beta units.
Beta testing to get FDA approval
FDA approval process (90 days... as the OCT laser has already been approved by the FDA)
Pre-production
There are obviously more steps in the process... but you get the idea.
In summary.... the LLSR journey has been dormant and now needs a few years to complete their journey.
2. Funding: LLSR (the subsidiary) benefits greatly from the merger. Now TAG Minerals can incrementally fund LLSR without having to go outside their organization.... talk about not diluting the company stock... in the recent post by les4lb....he rightly pointed out the share exchange condition for the merger... but.... that dilution is not a problem... why?... because two companies are under the corporate umbrella so there is minimal damage when each subsidiary is approximately is 150M + 150M in shares. The actual number of shares may not be correct... but it is the concept.... if LLSR had been able to raise funds (over time most likely in the range of $8M-$12M), they would have surely had to dilute the company shares as a single entity... that is why I argue in favor of the merger share exchange as a minimal event.
3. TAG Minerals claims to be moving into gold production within the next 2-4 months... so we may enjoy a cash flow positive position by the 3rd quarter (compared to years from now with only LLSR). Now the stock price has a fresh face... a fresh story... "There's Gold in them their hills" mentality.... I continue to research Zimbabwe... but my initial thought is that Zimbabwe is a gold hot spot with diamonds, rubies, emeralds sometimes within the same mix of gold. We know that they will use Extrac-TEC equipment so the gold content must be near the surface (perhaps within 5-7 meters?).
4. "GOLD" is one of the hottest commodities... the "hot" buzzword in the market... I provided a clue yesterday to a non-related gold company with only a mineral report from a third party.... The global economy is going to be in chaos for years to come... so they focus on gold... you should be aware of the constant chatter about moving back to the gold standard as opposed to the USA dollar.... we have to get our dollar back in the game.... but for now... we can enjoy the focus on the global discussions as the monetary standard. Look at the price of gold now... I saw a report projecting the price to $5K... sounds silly.... but in the $1500 to $1600 range.... and compared to this most likely incorrect $5K projection... there is still a lot more room to rise given the global economy. So TAG is striking while the iron is hot!
I am in the process of collecting more information... so I should be back to post within the next few weeks.... for now.... I see no reason why we don't buy shares at this low of a cost basis..... I know the stock price essentially doubled yesterday... but this will be a see-saw event until more information unfolds.... let me say it differently... don't buy... so I can suck up more shares... You guys know I have been a believer and a cheerleader (or a pumper as shaffer calls me) in LLSR since the beginning... nothing ever changed except the fund raising disappointments.... and now.... I'm a gold buyer!
Everybody say,
Enlightened
