u/notmyprobl3m

For anyone that wasn’t able to attend the fireside chat yesterday and wants to watch it. Here is the recording.

Since the ai model isn’t being used with real money what can we expect for the earnings report next month? Is it just gonna be whatever they made from Halo?

From what I can tell, the 5B authorized share count is written into the company’s certificate of incorporation. Since SRXH is a Delaware company, lowering that number would most likely require a charter amendment. The problem is that shareholders can’t just force that amendment on their own. The board has to approve the amendment first and then put it to a shareholder vote.

That said, we aren’t completely powerless. SRXH’s bylaws appear to allow holders of at least 10% of the voting power to request a special meeting. So in theory, if enough of us shareholders banded together, we could try to force the board to have a meeting to vote on a reduction of authorized shares.

Another option would be submitting a shareholder proposal for the next annual meeting, basically asking the board to reduce the authorized share count. There are SEC ownership requirements for that, though, so not every small retail holder would qualify individually.

The bigger leverage would probably be voting against directors or supporting directors who are willing to address dilution concerns. If the board refuses to reduce the authorized shares, then shareholder pressure has to come through votes, proposals, and possibly a proxy campaign.

Remember when there was talk of EJ trying to get rich Arab investors to buy into SRXH. What if that is the reason he is not talking about the stock much at the moment and addressing the drop. Because he’s allowing them to buy in at such a low price to make their profits even better?
Or am I just making this up to make myself feel better?

"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

Lets calm down and be patient. Good things don't always come instantly.

I see a lot of posts discussing why EMJX could run after the merger, and I understand the bullish thesis. But I don't see many people discussing dilution and how it could affect the share price.

From what I've read, the merger involves a significant number of new shares being issued as part of the transaction, and there have been reports suggesting hundreds of millions of shares could be added through the merger structure.

My question isn't whether EMJX is a good company or whether Eric Jackson can execute. I'm specifically trying to understand the math.

If the business performs well after the merger but the share count increases dramatically, wouldn't that make it harder for the stock price to appreciate on a per-share basis?

Some people argue that most of the new shares will be locked up or held by insiders, so it isn't "traditional dilution." Others argue that dilution has already been weighing on the stock and could continue to suppress price appreciation.

For those who have dug into the S-4 and merger documents:

• What do you estimate the fully diluted share count will be after closing?
• How much dilution do you believe is already priced in?
• Do you think the market cap matters more than the share price at this point?
• What price target do you think is realistic once the merger closes, taking dilution into account?

I'm not trying to spread FUD. I own shares and am genuinely interested in hearing both the bull and bear cases. It seems like understanding dilution is just as important as understanding the merger itself.