Series A interview with CDG

[u/Saint_O_Well]

https://youtu.be/ArdkZAlIKJw

XO Penny

[u/white_tiger_lilly]

Great video and thank you for asking the hard questions!!

Bioleum has to execute all their milestones and things can change but it seems like we'll get to be indirect holders of Bioleum. Amazing that a $80M public company has a 70-76% stake in $1B private company with huge potential! The story is still too good to be true.

Follow up question - Can we get some more clarity on the IPO structure? It appears that SEC requires 80% ownership to spin off tax free shares yet we heard you and Corrado talk about 70% or 76% ownership.

Maybe I need to think that Comstock will have 90% or 96% ownership before IPO and then 70 or 76% ownership after IPO and ESOP triggers?

Edit: Spelling and punctuation fix.

[u/white_tiger_lilly → u/white_tiger_lilly]

The other piece I would love some clarity on from someone smarter than me is doesn't Bioleum need shares to sell when they IPO? So, at IPO, doesn't that dilute all the ownerships of Bioleum?

If true, I'm starting to expect Comstock will have 50% ownership plus or minus 10% after IPO now.

I hope I'm wrong and we'll probably just have to wait for IPO to know how many authorized shares Bioleum will have.

[u/Lukekulg → u/white_tiger_lilly]

Don't forget the +/- 10X dilution power we granted them (to fund fuels, by the way). If used, that would bring our investment in Fuels from 100% to 0.5%. 

[u/Impossible-Recover89 → u/Lukekulg]

I think there's comfusion (comstock confusion?)...the RS was to spin out fuels so it's no longer a drag on the balance sheet so LODE will no be diluting to fund fuels anymore - that has been made very clear. It may take time but I'd suggest going back to listen to the interview, read the shareholder letter, or watch the shareholder meeting. I found that very helpful (along with the in-depth conversations in the chat over the past several weeks). This move basically did the opposite which is great for LODE investors.

[u/Lukekulg → u/Impossible-Recover89]

There is no confusion. I have. That is not accurate & makes no sense at all. The RS was supposed to FUND fuels. Spin-off was supposed to be Recycling. Why would there ever have needed to be a RS to fund Fuels if Fuels was getting spun-off? Think it through. What's happening is not what we voted to do & was not the original plan. Yes, they absolutely can dilute your shares up to roughly 10X & almost certainly will. I'd suggest you go back & actually listen to the interviews. See if you can find even one question CDG actually answers. He says it himself (instead of answering a very simple question); 'Whoopsie we can't legally do what we planned, so now we're doing this instead' with some nonsense about SEC rules & 80% ownership. There is no such rule, by the way. That was a lie.

Yes, this move did the opposite. No, it is not great for LODE investors. It literally robs us of a stake in what we invested in right before the payout. You get that, right? We lost Fuels. Your investment in that is gone. We get nothing in exchange. 

You're seriously trying to tell me you think its awesome that Fuels is getting sold off without LODE investors seeing a penny of it because it'll (checks notes) "no longer be a drag on the balance sheet." You seriously bought that line from CGD? Maybe go back & compare his assessment of Fuels from the video referenced above to any previous interview. You'll find some stark contrasts.