He didn't take anything "out" and he is not worth anywhere close to one billion dollars ... especially not with MSPR. Lionheart agreed to merge with MSPR and change THEIR ticker symbol to MSPR ... so Ruiz did a merger and DID NOT go the normal route of doing an initial public offering (IPO) as the IPO would have been scrutinized heavily by the Securities Exchange Commission.
The total "float" or number of shares of stock that were trading before the merger was around 12 million shares ... that number was increased post merger to 29 million shares ... that is all there is authorized on the market. The MSPR company had an operating loss of $33 million dollars in 2021 on $8 million in revenue. That is it. 1st quarter of 2022 revenue was $8.2 million against expenses of $11.7 million before interest expenses of $10.4 million for a total FIRST QUARTER LOSS OF $13.9 MILLION. The book value of the MSPR stock is -$5.29 per share.
The stock distribution is unusual to say the least.
-Actual float as of yesterday 29 million shares of class A common stock (shares being traded and held by investors).
-Class A common stock issued to officers:
-Ophir Sternberg 601,617,497 shares
-Thomas Hawkins 1.190.000
-Roger Meltzer 1.190,000
-Class V common Stock issued:
-John Ruiz 2.1 billion shares
-Frank Quesada 900 million shares
Lionhart shares were trading at $10 before the merger. It appears that Ruiz simply took that share value in a market where 12 million shares were
being traded and "assigned" it to the Class V common stock to come up with a "PROJECTED" $30 billion dollar "valuation".
MSPR shows $200 million in long term debt on their balance sheet and an interest expense in excess of $10 million for the 1st quarter of 2022. MSPR has a LONG way to go to even approach break even let alone make a profit. It will be interesting to see where this company is revenue wise in a years time. Now that it is publicly traded information is available easily.
This is all correct and this is all insignificant, because the success or failure of his company is dependent on his ability to generate revenue in terms of his insurance collection business model.
That is always the way it has been.
It is practically irrelevant what his share prices is today, what you’re highlighting is a diluted share price and market reticence regarding possible future profitability.
As I have always said regarding this issue, it’s dependent on the execution of his business model. The long-term viability will not be determined today, tomorrow, or the day after. If over the next couple of years there is a trend towards increasing recoveries, you will see it trading higher as confidence grows in the model’s ability to generate revenue and be profitable.
You can write a book about the number of companies that spent years and years with a negative PE ratios, basically nonexistent PE’s, until they became ultimately became profitable going concerns. You know all the names.
Ruiz’ idea and business concept was always based on projected future income, not current profitability nor current stock price.
I’m sure
some of the people upvoting your post are doing so because they think this means he’s failing. He’s not. All that means is they are as stupid as Florida gaturd and Forfeit State fans.
His failure or success will not be determined anytime this year.
But I’m not cheering against this guy. I hope he ultimately succeeds, but whether he does or he doesn’t, at the end of the day, as long as he keeps signing those NIL checks I wouldn’t even worry about it, especially since he’s not the only one that will be securing NIL deals, he’s just the most vocal one.
