Siyata Mobile Inc (SYTA) News

This is a toxic lending deal. The "ELOC" deal as described in the latest F-1 where a small percent of the shares are registered. Toxic lending is associated with a company that can no longer sell shares at market nor obtain legit loans.

It is not lost on me that the minute Aitan (Core Gaming) appears on the scene, the company turns to such toxic lending.
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It was a reply to a deleted post. It may be a reason this has dropped 65% in a week after the announcement of a merger with his company.

Why is that relevant?

Aitan is a habitual scammer. Didn't think it was necessary to say that here......until now.

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SYTA, new 52 week low

Thanks, I was just hoping you might. I couldn't find anything about it either. It would be a bitch to wait 5 months to get unregistered shares that are not tradeable.

I am concerned about the recent ELOC deal that gives them $18M worth of stock at a 12.5% discount to market. And up to 2.7M of that stock would be free trading per the recent registration statement...if it hasn't already been issued. If it has. that could be what is causing selloff. We haven't had any recent TA updates on the OS.

From a legal standpoint, I don't know that SYTA could refuse to issue any shares to ELOC if they wanted to.

The ELOC deal would give them about 8.5M shares at today's $2.43/share price.. From a legal standpoint, I don't know that SYTA could refuse to issue any shares to ELOC if they wanted to. Were they to be issued Pre Merger, it would make the 10% "makeup dividend" pretty much go away making any overvaluation of CORE a disaster to existing shareholders (if it is indeed overvalued. Personally, I think it is.)

I have no idea about the registered part.

Thanks....Do you know if they will first be registered? Or maybe 144 exempt, or restricted?

6 months makes a big difference if this is way overvalued. Will be forced to hold the shares until after everyone else dumps out. If that turns out to be the case, this "dividend" could be pretty much worthless.

I hope this drop is due to stock market dramatic decline.

Within 6 months of merger that is tp take place 8n the second quarter 2025. That could be as much as 9 months from now.

Does anybody know if the makeup share dividend to existing shareholders will be registered. When will they be issued? At the time of merger?

IMO SYTA is going to take off today. Get in while it's cheap

Where are all of the Wall Street pundits promoting this stock.

Does anybody know what the warrant purchase price is here at SYTA?

Per the 6k the number of common will be the $160m / avg price 10 days.

So if $4 is used it will be 40m OS and shareholders will get the equivalent of at least $4 million shares (the guaranteed minimum 10%) -- meaning their shares are then worth $16million - meaning the market cap arguably should NOW be at around $16 million -- ie $10

If the market today assumed it would be worth $16m then the price would go to $10, and here's what would happen. The OS would be 16m after the merger and shareholders would get 1.6m shares - or a 1:1 conversion.

In both cases the market value at the moment of the the merger is $160m

But the market can't force the price to stay at $4 in the first case or at $10 in the second case once the RM takes place.

Right now it is valuing the combined entity at about $48m 1.6m OS x $3 x 10 (assuming 10% to SYTA shareholders)

What justifies the $48 million? You said you use a combination but don't say what it is.

Google AI says Most small growth stocks are accurately valued primarily through a combination of future earnings projections and relative valuation metrics like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-earnings growth (PEG) ratio, heavily relying on analysts' future earnings estimates due to the high growth potential and often limited current profitability of these companies.
But it also says this: When small growth stocks have no earnings, they are most commonly valued using the price-to-sales (P/S) ratio, which compares the company's market capitalization to its total revenue, as this metric allows investors to assess value even when there are no profits yet, based on the potential for future earnings growth
This is what I had thought, and this arguably justifies what Syata's independent party did to come up with the $160m valuation..if AI is to be believed here.

I favor using several approaches as all of them have their strengths and weaknesses. But they tend to show themselves for what they are after doing several of them and you can make an informed guess. I personally NEVER use a p/s ratio for anything but elimination for consideration purposes because it is very quick. If it passes, that only tells me to check further. If it fails, I can drop it.

I have already stated this. But I will do it again. POST TRANSACTION, the OS will be around 60M shares, not 1M. Please read the transaction details. That is what you need to use. Personally, I see the value in this, post transaction, as only about $1/share.

Sounds redundant to me. News about newsletter promoting the company. I am suspicious of Core Gaming motives and ending up with officers in charge of overall company.

Your mistake is that you use current OS to evaluate to post OS, and then extrapolate it. ie- you are not accounting for the dilution that will occur due to the transaction. The current OS will balloon from 1M to approx 60M. Your $22/share valuation is really only $.37 post merger based on your cap of about $22M in coming up with that (you arbitrarily use a valuation of $16M). To come to current market price/share, the company would indeed come to about $160M in valuation. However, this is a circular calculation using $160M to come up with $160M.

It all gets down to what the company will be worth divided by about 60M shares. Knowing Aitan as I do, I expect they will issue tons of preferred shares with a high conversion factor to hide the dilution and many naive investors will fall for it. But it sounds like existing shareholders are not that naive as it appears they have been selling off while they can.

Yeah - about 900,000 shares higher on the 6k than the last report. I haven't tried to track down the source of that dilution. They had news today - see my earlier post -- looks like an attempt to create volume/interest.

Share price holding up pretty well at just under 3.00 considering 900 Dow drop today, and o news. Where exactly did 1.6 m8llion O/S come from?

Yep. I guess you favor a PE approach or something else? My last post explains my thinking more.

The price DID explode to over $9 on the news, but quickly sold off as is the norm on pre-market news plays these days...and selloffs on tiny floats kill the move for the rest of the day.

I'm willing to admit when I'm wrong--and the market is saying I'm wrong but I"m not sure the market is right. I've learned it is often wrong on these small stocks.
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It helps to see your thinking. Thanks.

I guess that explains the explosion in price/share since the announcement, 3.50 pre-announcement going to today's 2.90/share. Suffice it to say I don't agree with this analysis at all. It appears I am not the only one.

My understanding is both PE and PS are used but so many companies have no earnings that PS dominates the valuation methods for them...maybe that is not correct. I was encouraged to see that they are operating at breakeven at Core Gaming - and that the cash covers the debt. I was trying to figure out why in the world the stock was selling off - did Core have huge debt? Glad to see they don't.

At any rate I think the selloff has little to do with the actual valuation perception and mostly to do with the quick-flip Pre-Market traders selling at market open and killing any demand. It's a shame because with such a low float this thing could have gone to $20+ instead of just $9 last week.

Ahhh....I see it now. The P/S ratio method is one of the least reliable methods of valuation.....for the very reasons we see here.... And nobody would evaluate the value of a company based on that alone. It would be malpractice for an appraiser to base a company on that valuation in this case.

So how much profit would you expect to see from a company to pay off a 160M loan at 7%? And how much profit does this company have to do that? I know they say they expect to make a profit next year, but it hasn't happened yet.

That post you linked to meant to convey that at today's metrics the future valuation of $160m would put today's price at $22 based on the 716k shares outstanding and the minimum ownership of 10% to SYTA shareholders. Since that time someone posted that the outstanding is roughly twice that (1.647m per the 6K) - so that would drop it to around $9.7 for a fair current value - not taking any growth into account. With the projected growth the price arguably should be higher than the average of based on a PS of $2.6 which is the position taken by the review in todays release here: https://247marketnews.com/syta-siyata-mobile/

All based on the accuracy of the $160m valuation for the future.

I posted about the $160m in #902. The $160m seems reasonable based on $80m revs x 2.6 (= $208 million) and adjusting for debt and Syrac losses.

The 6K shows combined financials although they are through 6/30 and are not audited -- but all together enough info to satisfy me that the independent valuation is reasonable.

hope that helps.

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wrong 10%. The question is how you justify a $160M valuation, not how they are going to make up the shortfall from an overvaluation to existing shareholders.

Still looking for your post where you say you explained the $160M valuation.

All i see is your claim that the $160M valuation would put this at $220/share. https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175859693

Am I missing something? I don't understand how your "PS of 2" would give a $160M valuation.

Real simple. I used the PS of 2.

I posted about it here on this thread a few back. 2.5 seems to be the going ratio for gaming software companies.

Please share your valuation method. I am curious.

You are free to think whatever you want. But under the most favorable method I can find, the real value is less than 10% of $160M.

What is your reason for saying $160m is BS? Based on PS on 80m revs of the merging company, cash to cover debt and breakeven operations it looks reasonable to me. Maybe being a Hong Kong company reduces typical evaluations? I don’t know about that. Willing to change my mind if you have a good rationale

Yes it was $160M. Which of course is BS. Siyata trying to shed it's existing shareholders?

https://www.brodskysmith.com/cases/siyata-mobile-inc-nasdaq-syta/

So much more ground to make up. It’s showing good resilience so far.

Thanks. Time to get this show on the road.

SYTA news again - they are trying to get the word out - maybe this will help: https://247marketnews.com/syta-siyata-mobile/

Im trying to understand why the company SYTA would tout the recent press conference as something so important that investors should be vigilent in knowing exactly when the conference would occur. Did they believe that the news would cause a dramatic increase in PPS that would allow investors to sell all of their shares. What is the reason for CORE Gaming to want to go public?

Thanks. At least there is a profit.

https://www.otcmarkets.com/filing/html?id=18223047&guid=y7B-kp38d5EvB3h

I must have missed something. Which 6k was that in? Todays new was useless and appears desperate. Stock stopped moving up significantly with recent positive news stories. Big touted wealth creation event was pumped beforehand with significant payment for disseminating news of big event. Too much doubt about specifics is right.

This is a response another guy wrote about that he got from IR today that I copied and wanted to share here…The IR team responded again. They stated that there are currently 1,774,796 common share outstanding. When you included the 431 Class C pref shares, which are convertible, you would add another 189,035. So the "total fully diluted shares count [is] 1,963,831." They further stated that "all warrants and stock options are way out of the money." Using the 1.96 million share count, the implied value per share in the merger is a minimum of $9.05. This is the price that the stock should be moving towards.

oops - the 6k DOES have financial info:

Newbyera is the name of a Hong Kong company owned by Core Gaming

$35m in revs for the 6 months ended June 30, 2024 vs a year earlier
Repeats approx $80m in revenues for 2024

Newbyara operates near breakeven levels

Cash assets $14m and trade and receivables $9.3m
Liabilities approx 21m

Unaudited -- but still we know now there isn't a huge debt overhang

News.. it appears the company believes this is a shareholder friendly transaction. It will come down to we do the market agrees with the $160 million valuation. I’m not sure why it wouldn’t. The average PS ratio is 2.6 times revenues for a software gaming company. But what if Core gaming is $100 million in debt? The market doesn’t wanna take a chance not knowing.

While I understand your view about the legacy business having great promise, that legacy business is not going away. They just announced T-Mobile’s great interest in it. I think that continues and we will get some great announcements from that.

I really think what happened is the market quickly pounced on the news and drove it up to over eight dollars a share premarket on high volume. But today’s premarket trading is one and done if the stock drops too far too fast. That’s exactly what happened. Those traders who profited premarket dumped as soon as the market opened to take their quick profit. And with the float this small, the price not only goes up very quickly, but it goes down very quickly. That caused fear. Which caused a second dump. And then that was it. You get two big dumps like that in about 30 minutes time and nobody wants to buy the stock anymore

I still see that as a gross and uninformed over-reaction and I feel for the company because it seems like they really have made a good move here. It is clear they feel the same. But as I stated in the first paragraph there is too much uncertainty still. The 10% ownership doesn’t guarantee that the market will value this at $160 million. Why not share some more information now instead of waiting?

However, they would’ve been better off by not only restating the terms, but by stating some of the highlights of their business, as well as some of the highlights of the incoming company for the benefit of both legacy shareholders, as well as potential new investors Nobody expected a gaming company, which seems unrelated, so the shareholders need to be able to warm up to that idea and you don’t get that by just throwing a few of the numbers along with basically a “trust us” message at them out of the blue.


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Correction. I misread article about top premarket decliners. The earnings reference was to Ibotta stock, not SYTA. Legal investigation still accurate.

Wow, very interesting. Thanks for posting that.

News ... merger deal being investigated by law firm due to concens about SYTA violation of fiduciary duty regarding SYTA shareholders getting a fair deal. Other new says SYTA reported lower earnings and profit, but no SEC filing to be found. I dont like the deal and wish they would be adopted by T-Mobile.

Agree. Good luck to us all. Maybe someone with influence will take a closer look tonight or this weekend.

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even at a TRIPLE...where else you gona make 300% on your money in 3 months ????

OK THANKS. Not looking good so far. Selling off after market.