Analysis of SRM provided by AI:

According to public information, SRM Entertainment (NASDAQ: SRM) has reached a strategic partnership with Tron, led by Sun Yuchen, planning to achieve Tron’s listing on the NASDAQ in the United States through a reverse merger. The specifics are as follows:

SRM will issue 100,000 shares of Series B convertible preferred stock, with a conversion price of $0.50 per share, which can be converted into a total of 200 million shares of common stock.

At the same time, SRM will also issue 220 million warrants, with an exercise price also set at $0.50 per share, which can subscribe to a total of 220 million shares of common stock.

If all warrants are exercised, SRM will add approximately 420 million shares of common stock, which is a 23.36 times increase compared to the current approximately 17.24 million shares of outstanding stock.

This means that the shareholding ratio of original shareholders will be diluted to about 3.94%, with the current outstanding shares accounting for about 4%, and the remaining 96% of shares will be occupied by the newly issued shares.

The total value of this strategic investment is approximately $210 million, with funds primarily used to establish Tron’s TRX token treasury strategy. Sun Yuchen has been appointed as a company advisor, and SRM also plans to change its name to Tron Inc.

Regarding your question:

Is this 96% of the shares achieved through the issuance?

Yes, this 96% of the shares is achieved through the conversion of the issued Series B convertible preferred stock and the exercise of the warrants, and the full issuance and exercise have not yet been completed.

Has the issuance not been completed yet?

The company has announced the issuance plan and signed relevant agreements, but the conversion of the preferred stock and the exercise of the warrants still require time and shareholder approval, and the full issuance has not yet been completed. The current outstanding shares remain at the original approximately 17.24 million shares.

Does this mean that the currently fully circulating shares will become 4%, and the market value after the issuance should be multiplied by (96/4)?

Yes, the shareholding ratio of original shareholders will be diluted to about 4%, and the total share capital after the issuance will be approximately 23 times the current outstanding shares. Theoretically, if the stock price remains unchanged, the market value will expand according to the share capital expansion ratio, meaning the current market value will be multiplied by approximately (96/4=24) times to reflect the expected market value after the issuance. However, the actual market value will also be influenced by the market's recognition of the company's value after the issuance.

Summary: The current stock price of SRM is about $11. After the completion of the issuance, the total share capital will significantly increase, and the shareholding of original shareholders will be diluted to about 4%, while new shareholders will hold about 96%. The theoretical market value after the issuance should be about 24 times the current market value, but the actual market value depends on the market's recognition of Tron’s strategy and the value of the TRX treasury.

The above analysis is based on SRM's official announcements and reports from various financial media.

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