Marian Filo       

Company Overview

Euoko Group Inc. (OTCBB: EUOK) owns premium brands that develop, market and distribute scientifically-advanced skin treatments, including the brand, Euoko. Euoko's current portfolio consists of 24 products spanning five treatment collections that target aging, dull skin tones, skin protection, uneven pigmentation and blemishes. This product line offers comprehensive solutions to such skin concerns as wrinkles, fine lines, under-eye dark circles, dark spots, acne, oxidation, environmental exposure and skin fatigue. Combined with innovative products for basic daily cleansing and facial priming, Euoko offers a complete line of synergistic formulations that target the most demanding luxury consumer. Euoko's well-appointed, understated primary and secondary packaging communicates innovation, science and modern sophistication, while reflecting the prestige positioning of the portfolio. Euoko sells its product line through premium distribution channels and is represented in more than fifteen countries and territories worldwide. Retail partners of the brand include such premium department stores as Bergdorf Goodman in New York City (USA), Printemps in Paris (France) and La Rinascente in Milan (Italy). Euoko's products are also sold globally through the company's internally-operated, multicurrency, multilingual website.

Valuation Model Yields a Target of $3.06

As outlined in the "Valuation Model" section of this report, we are issuing a target price of $3.06 for Euoko Group, Inc. Please review the report in its entirety.

More About Euoko

Euoko Group's constantly growing library of active principles currently exhibits 102 ingredients from Switzerland, Spain, France, Canada, Denmark, the United States, the Amazonian Rainforest and the Kalahari Desert. From their unique hyaluronic acid with no animal origins or strepp bacteria derivatives to their recent addition of an extraordinarily effective, age-killing peptide that fully mimics Waglerin 1, a peptide that is found in the venom of the Temple Viper, Tropidolaemus wagleri, the company stands strongly behind the innovative collection of the noble ingredients found in their products. Both the safety and effectiveness of the company's ingredients are important to them. They avoid unnecessary preservation or stabilization and respond rapidly to emerging innovations in biotechnology, nanotechnology, biology, peptides and other active principles.

Further, the company's proprietary delivery system ensures maximum stability and absorption of their product's active principles into the skin. This delivery system is the single key catalyst that maximizes the effectiveness of these principles, while making it possible for high concentrations of these principles to be included synergistically in the company's formulations. Highlights of this system include a strain of red marine algae that maximizes penetration of actives into the skin by causing a controlled immune response when applied topically. This effect is enhanced by the delivery action of the company's micro-surfactants bound to a pure grade of hyaluronic acid, as well as their unique timed-release technology. Every Euoko product embodies Euoko’s commitment to science and quality. When a client purchases a Euoko treatment, they stand confident that their purchase represents the latest scientific discoveries that are at the forefront of peptide-technology, nanotechnology, biotechnology and biology.

Successful Preview Launch
Printemps Department Store in Paris (France)

Euoko announced on March 12 that its preview launch event that began on February 18, 2008 at the world-renowned Printemps Haussmann department store in Paris was well received and the results exceeded the company's expectations. Euoko's large booth, occupying 375 square feet (approximately 35 square metres) in the central area of Printemps, has received significant positive response from industry and customers. The preview during the first three weeks of the event resulted in unaudited, single-store retail sales exceeding 42,000 Euros (approximately 65,000 US funds), exceeding the company's expectations. The booth, which reflects the brand's modern, understated image, was constructed primarily of white acrylic and was transported to France from Canada, where it was constructed.

Euoko began marketing its products in key European markets in September of 2007 and is currently represented in more than 10 countries and territories.

Extensive Editorial Coverage
April 2008 issue of W Magazine

The April 2008 issue of W Magazine included extensive editorial coverage of Euoko Group's luxury skin care brand, Euoko. With a total adult audience exceeding 1.4 million and a median annual income of more than US$145,000, W Magazine targets an authoritative readership base with a solid interest in latest trends in fashion and beauty - a category specifically targeted by Euoko's premium portfolio of innovative skin care treatments.

The Mix Master: Hip new skincare line Euoko blends exotic ingredients

This non-sponsored coverage refers to Euoko's founder and President, Brandon Truaxe, as "The Mix Master", "Armed with exotic potions and an iron will". The article also featured a quotation from Patricia Saxby, Vice President and Divisional Merchandise Manager of the Bergdorf Goodman department store: "I've never had people call me so quickly to tell me that after a couple of days they saw changes."

This article is published at a time during which Euoko has received significant attention from the media, with UK-published Wallpaper magazine selecting the brand as one of the top 3 "facial fixes" of the year in its Annual Design Awards.

Natural Products

Euoko is committed to selecting and sourcing the most effective, safest, scientifically-studied ingredients from across the world. These ingredients include direct plant-based derivatives, advanced peptides, biotechnologically-obtained actives, ingredients derived from fermentation, basic minerals, enzymes and marine compounds. Euoko does not use any ingredient derived from animals. Additionally, Euoko does not use any ingredient that has been shown to be harmful to humans if used topically. In particular, none of Euoko’s products make use of the commonly-used preservatives of the paraben family. Euoko’s preservatives and stabilizers are food grade and do not represent any risk if used as directed.

Use During Pregnancy

None of Euoko’s products use any ingredient with an indication of risk for use during pregnancy. However, our products do contain high concentrations of innovative, functional actives and it may be advisable to consult a physician if you are pregnant.

No Animal Testing

Euoko does not test its products on animals or pay others to perform testing on animals. All of Euoko’s products are tested on humans.

The Products
Product Collection

W-Series (Whitening)

Representing the expert solution in achieving the most solid epitome of attraction, the W-SERIES promises to deliver a flawless, translucent, white, even skin tone. This superb skin lightening collection makes no compromise in selecting the safest, rarest and most effective active ingredients that have been clinically tested and documented. Targeting overall skin lightening or such spot darkness as freckles, age spots and sun spots, this collection uses no hydroquinone or kojic acid, both of which are documentably unsafe, unstable, carcinogenic and banned in many countries. Instead, such outstanding clinically-tested ingredients as Euoko's effective lightening peptide from France, Alpha Arbutin from Switzerland, Tyrostat from Canada, 1-Methylhydantoine-2-imide (a safe, skin-identical amino acid), Magnesium Ascorbyl Phosphate (a superb Vitamin C derivative), Bearberry Extract, Encapsulated Beta Arbutin from Spain, Mallow Extract, Primula Veris Extract, Alchemilla Vulgaris Extract and Veronica Officinalis Extract come together in this comprehensive collection that is indispensable in magnifying the beauty of any skin tone.

The products in the W-SERIES have light textures that are instantly absorbed due to Euoko's exclusive delivery systems containing the most unique and highest quality hyaluronic acid and a marine micro-alga that enhances penetration into the skin. These elegant textures and excellent absorption capacities make the products in this collection suitable for all skin types and tones. Backed by several confirming clinical studies, the ingredients in this collection make it by far the highest quality, most effective and safest option available for achieving a light, even skin tone.

A-Series (Blemishes)

Deviating from the aggressive, mainstream solutions that have started to overpopulate even the most exclusive class of skincare, the A-SERIES makes no use of such harsh ingredients as Benzoyl Peroxide, Oxygen Peroxide or industrial antimicrobial agents, most of which are carcinogenic and are associated with abnormal oxidation of the skin. Further, this collection does not rely on the traditional model of depleting the oil content of the skin's surface to eliminate blemishes. This approach often causes the skin to overproduce oil in compensation, making the condition actually appear worse. The targeted products in the A-SERIES rely on the anti-bacterial super-power of multiple sesame and marine-based sebum regulating agents, as well as antibacterial oligo-peptides derived from nature, that have shown to deliver blemish-free skin with unprecedented efficacy.

R-Series (Radiance)

Skin radiance is a key element of beauty, perhaps more so than the absence of fine lines and wrinkles. The R-SERIES is clinically shown to restore a bright, energetic glow to the skin's appearance and is a one-of-a-kind proposal for maintaining year-long radiance. Utilizing multiple European peptides, extracts from a wide array of marine species, exotic fruits, African plants, a variety of biotechnologically-advanced yeast derivatives, as well as vitamins, minerals and antioxidants like ellagic acid, this unique collection represents an imperative arsenal for battling dull skin tones common to today's stressful, busy lifestyles. Extraordinary nourishment and cellular renewal arrive naturally in this energizing collection of treatments that reward the skin every day.

P-Series (Protection)

While the cellular structure of the skin is highly organized and defensive, constant exposure to such environmental aggressions as chemicals, stress, UV radiation, dietary imbalance and pollution degrade the skin's capacity to protect itself and impede the perfect micro-environment in which the skin's cells can renew and rebalance constantly. The P-SERIES uses the finest peptides, marine derivatives, metabolic enhancers, DNA protectors (from a purified Kalahari Watermelon), as well as antioxidants from Amazonian and Himalayan berries to restore balanced renewal, replenish lost nutrients and create a perfectly clean, moist environment in which the skin's repair mechanisms can function optimally. Detoxified, the skin enjoys a superbly crafted, highly rewarding survival environment and regains a youthful tone and buoyancy.

Y-Series (Aging)

The Y-SERIES is the single superior source for effective facial sculpting, lifting and smoothing treatments. This youth rocket relies on unparalleled concentrations of the rarest, most effective, most confident active ingredients specifically targeted at dramatically reducing the size and number of lines and wrinkles and drastically harnessing the oxidative properties of skin metabolism and aggressive elements of nature. Targeting every aspect of ageing, this series enjoys high concentrations of superior peptides, vitamins, amino acids, plant extracts, lipolysis enhancers (for facial contouring), humectants and nutritive elements in an extraordinarily effective delivery system. This collection gains its confidence from superior peptides and focused derivatives, including Euoko's Okra oligo-peptides, Leuphasyl, Matrixyl 3000, Snap-8, Argireline, Antarticine and a topical, painless facial muscle contraction inhibitor peptide that mimics the activity of the venom of the temple viper, which reflect only a brief sampling of the wide range of clinically-researched actives used in this collection.

The Y-SERIES unquestionably represents the farthest advance in scientific skincare and is assertively positioned as the most exclusive, indispensable skincare collection of its kind. The Y-SERIES lessens the size and number of lines and wrinkles, combats dark spots, resculpts the facial contour and restores youthful cellular energy, thereby exceeding the expectations of the most demanding, scrutinizing and critical clientele.

Distribution Methods
Euoko is distributed in retail partners in at least ten countries.

Some of the key retail partners are:

• Bergdorf Goodman in the United States
  
  
• Printemps in France
  
  
• La Rinascente in Italy.
  
  

There are also other distributers in Spain, Germany, France, the United Arab Emirates and China.

Another source of distribution is the company web site:

www.euoko.com

This site is a fully functional "E-Commerce" site, and is multi-lingual and multi-currency.

The Company plans to distribute Hewitt-Vevey products through major retail partners, shopping channels and distributors. They also plan an international web site to do so online - like before a fully functional "E-Commerce" site that is multi-lingual and multi-currency. This site is not yet developed.

Product Guarantee

Four week return policy; no questions asked; return unused portion.

Fulfillment

The Company currently fulfills all customer orders from our warehousing facilities in Canada and the United Kingdom, depending on the destination and regulatory requirements. We are committed to shipping accurate orders, efficiently and effectively. Generally, the delivery time is within 1 to 3 business days from the date of the receipt of the order.

Wholesale Sales

Retail partners and distributors worldwide have access to our proprietary software systems that allows for easy, multi-currency order placement, payment processing, warehouse notification and administrative tasks. Such orders are shipped from one of our international warehouse facilities mentioned earlier for delivery within 1 to 3 business days in most cases.

Euoko Advertises Using the Following Outlets:
as disclosed in the Latest 10KSB

• Town&Country (USA)
  
  
• Town&Country Travel (USA)
  
  
• Town&Country Weddings (USA)
  
  
• Surface (USA, International)
  
  
• New Beauty (USA)
  
  
• Wallpaper (UK, International)
  
  
• Nuvo (Canada)
  
  
• Fashion Quarterly (Canada)
  
  
• AnotherMagazine (UK, International)
  
  
• Vogue Italia (Italy)
  
  
• Beauty in Vogue (Italy)
  
  
• Printemps Magazine (France)
  
  
• Bergdorf Goodman Magazine (USA)
  
  
• WWD BeautyBiz (USA)
  
  
• Beauty Report International (Europe)
  
  

Publicist for Euoko

Marcy Engelman in the United States. Marcy also represents such clients as Julia Roberts and has previously represented Lancome.

Euoko participates in key fashion and entertainment events in various capacities. Historically, Euoko’s products have been featured in a celebrity goodie bag at the Academy Awards, in celebrity welcome bags at the Bryant Park Hotel during Fashion Week in New York and at other industry events within North America.

Plan of Operations as Provided in Latest 10KSB
Plan of Operations

What follows is directly quoted from The Company’s latest 10KSB:

"Over the next twelve month period we intend to pursue our business plan of developing, marketing and distributing luxury skin treatments. We also intend to develop, market and distribute a line of skin treatments through our subsidiary Hewitt-Vevey. We intend to explore ways of expanding our company through greater marketing, sales and distribution arrangements. We may have to raise additional financing to be able to take advantage of expansion opportunities as they arise. If we do require additional financing, we will likely do that through taking on debt and we may consider the sale of equity securities. We have not determined which, if any, expansion opportunities we will proceed with but we would like to have the financing to be ready to act quickly if the right opportunity arises."

"Over the next twelve months, we also plan to continue our current research and development work on ten new products. We hope to have completed products ready to introduce to the market by end of 2008. Seven of the ten products we are working on are for our Euoko line and three are for our Hewitt-Vevey subsidiary."

Management

Brandon Truaxe
President and Chief Executive Officer

Educated in Computer Science at the University of Waterloo, Brandon’s interest in business development has allowed him to explore a variety of successful ventures in software, nutrition, graphics design and cosmetics. Having conceptualized and founded Euoko, Brandon has also maintained a successful software development business, Custom Struct, whose most notable project has been the leading of a renowned web-centric automotive financing system for the Canadian operations of DealerTrack Holdings, Inc. This software system has revolutionized online lending, and is used by more than 2,500 automotive dealerships and over twenty prime and sub-prime lending institutions. Prior to founding Euoko, Inc., he was a founding member and president of Schematte Corporation (a software development firm) and Organic Senses Ltd. (a marketer of nutritional supplements). Brandon has developed and led Euoko’s branding, design, ingredient selection, legal issues, website design, software design and all aspects of Euoko’s business. Mr. Truaxe has no prior public company experience as a director or officer.

Michael Basler
Chief Financial Officer

Michael Basler has an Honours B.A. (major in Economics) from Wilfrid Laurier University and received his Certified Management Accountant designation in 1992. For the past twenty years, Michael has held senior financial management positions of increasing responsibility with publicly-listed companies. Prior to joining Euoko in July 2007, Michael held the position of Chief Financial Officer with DealerTrack Canada Inc., a Canadian subsidiary of DealerTrack Holdings, Inc.

Prior to DealerTrack Canada Inc., he was Corporate Controller and Treasurer with Platform Technologies Inc., and Corporate Controller with both Teklogix International Inc. and Promis Systems Corporation. Michael’s experience includes establishing and administratively staffing international subsidiary organizations, dealing with the complexities of international income and value-added tax regimes, tariffs and duties, and consolidated and local financial reporting. Michael was also instrumental in preparing each of the companies with which he has worked for their Initial Public Offerings. Mr. Basler has no public company experience as a director or officer.

Julio Torres
Vice President and Chief Innovations Officer

Educated in Computer Science at the University of Havana, Julio has gained extensive background in modern software development in positions of progressively increasing responsibility with Cuba’s Ministry of Finance. Prior to joining Euoko, Julio held the position of CEO at Vitral Projects Limited, a software firm founded by him that provided software consulting services to DealerTrack Holdings, Inc. His firm has collaborated extensively with Brandon Truaxe in the development of a complex automotive financing software system for DealerTrack. At Euoko, Julio’s creativity and extensive design background have allowed him to play a vital role since the early stages of the company’s brand and image development. Euoko benefits not only from Julio’s creativity and extraordinary attention to detail, but also from his solid technology background which has been fundamental in the development of Euoko’s technology requirements. Julio has been heavily involved in the development of Euoko’s branding, design, formulation, ingredient selection, supplier selection, legal issues, website design, software design and all aspects of Euoko’s business. Mr. Torres has no public company experience as a director or officer.

Risk Factors
Risks Related to the Company

What follows is a summary of the risk factors mentioned in The Company’s latest 10KSB:

"We have a limited operating history and limited historical financial information upon which you may evaluate our performance.

"We are in our early stages of development and face risks associated with a new company in a growth industry. We may not successfully address these risks and uncertainties or successfully implement our operating strategies. If we fail to do so, it could materially harm our business to the point of having to cease operations and could impair the value of our common stock to the point investors may lose their entire investment. We may not generate positive cash flows or profits in the future. As the majority of our business assets and all of our directors and officers are located outside of the United States; investors may be limited in their ability to enforce U.S. civil actions against our assets or our directors and officers. You may not be able to receive compensation for damages to the value of your investment caused by wrongful actions by our directors.

"The great majority of our business assets are located outside of the United State and all of our directors and officers are resident outside of the United States. Consequently, it may be difficult for investors to affect service of process within the United States upon our assets or our directors or officers, or to realize upon judgments of United States courts predicated upon civil liabilities under U.S. Federal Securities Laws or other laws. A judgment of a U.S. court predicated solely upon such civil liabilities may not be enforceable in other countries. You will likely not be able to recover damages as compensation for a decline in your investment.

"Risks Related to our Business

"We will rely on third-party suppliers and manufacturers to provide raw materials for our products and to produce our products, and we will have limited control over these suppliers and manufacturers and may not be able to obtain quality products on a timely basis or in sufficient quantity. Substantially all of our products will be manufactured by unaffiliated manufacturers. We may not have any long-term contracts with our suppliers or manufacturing sources, and we expect to compete with other companies for raw materials, production and import capacity.

"There can be no assurance that there will not be a significant disruption in the supply of raw materials from our intended sources or, in the event of a disruption, that we would be able to locate alternative suppliers of materials of comparable quality at an acceptable price, or at all. In addition, we cannot be certain that our unaffiliated manufacturers will be able to fill our orders in a timely manner.

"If we experience significant increased demand, or need to replace an existing manufacturer, there can be no assurance that additional supplies of raw materials or additional manufacturing capacity will be available when required on terms that are acceptable to us, or at all, or that any supplier or manufacturer would allocate sufficient capacity to us in order to meet our requirements. In addition, even if we are able to expand existing or find new manufacturing or raw material sources, we may encounter delays in production and added costs as a result of the time it takes to train our suppliers and manufacturers in our methods, products and quality control standards. Any delays, interruption or increased costs in the supply of raw materials or manufacture of our products could have an adverse effect on our ability to meet retail customer and consumer demand for our products and result in lower revenues and net income both in the short and long-term.

"In addition, there can be no assurance that our suppliers and manufacturers will continue to provide raw materials and to manufacture products that are consistent with our standards. We may receive shipments of product that fail to conform to our quality control standards. In that event, unless we are able to obtain replacement products in a timely manner, we risk the loss of revenues resulting from the inability to sell those products and related increased administrative and shipping costs. In addition, because we do not control our manufacturers, products that fail to meet our standards or other unauthorized products could end up in the marketplace without our knowledge, which could harm our reputation in the marketplace.

"Legal Proceedings.

"We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest."

Valuation Model

At the time of this report, Euoko Inc. stock closed at $2.40 (April 21, 2007). The 52-week low and high are $0.58 and $2.40 respectively. The financial year of the Company ends on 31st July.

We have developed a valuation model for Euoko Inc. based on the present value of the expected future cash flows (DCF model). The key assumptions for the DCF model are as follows:

• Euoko Inc. is engaged in the business of development, marketing and distribution of luxury and mainstream skin treatments. It offers twenty-four luxury skin treatment products categorized into five collections: R-Series for enhancing skin radiance, Y-Series for targeting lines and wrinkles, A-Series for blemish-prone skin, P-Series for diverse environmental protection and W-Series for correcting pigmentation problems.
  
  
• The Company is currently focusing on increasing marketing, distribution and sales of its product lines, and in developing additional luxury and mainstream products to enhance the existing product line.
  
  
• One of the drivers for the Company’s growth will be its investments in research and development. The Company expects its R&D efforts to result in 10 new products being introduced in the market by the end of 2008, which will enable Euoko to grow and expand its market.
  
  
• The branding efforts of Euoko also seems to be paying-off as there is increased brand awareness of Euoko’s products. The current marketing initiatives along with the new product launches will enable the Company to grow its revenues and profits significantly.
  
  
• Though there is a slowdown in the overall economy the luxury products industry seems to be unscathed. This is very good for Euoko’s business. In fact we see this as a niche business that has significant upside potential with high profit margins because of unique products, strong branding and premium pricing.
  
  
• With its products priced strategically [Intense Lift Concentrate (US$500), Cellular Energy Radiance Cream (US$170) and Blueprint Resculpting Cream (US$180)] and a strong product pipeline we see tremendous opportunity for the Company’s business.
  
  
• The Company’s exclusive distribution agreements with Atout Cosmetics for Germany, Switzerland, Denmark, the Netherlands and Belgium and with Grupo Ritzy for exclusive distribution in Spain, Portugal and Andorra will keep the marketing costs under control and enable Euoko to grow its market in Europe.
  
  
• We project revenues of $1.2 million in 2008 and $6.0 million in 2009 based on our assumption that Euoko will be successful in launching new products in late 2008. Thereafter, we expect revenues to grow by 180% to $16.8 million in 2010 and 65% to $27.7 million in 2011. We project revenues to grow by 30% to $36.0 million in 2012.
  
  
• We estimate Cost of Goods Sold (COGS) to be 38% of Revenues or $0.46 million in 2008. COGS is estimated to be 36% of Revenues or $2.2 million and $6.0 million in 2009 and 2010 respectively. Thereafter, COGS is estimated to be 35% of revenues in the projected period.
  
  
• Salaries and Benefits are forecasted to be $0.6 million in 2008, $0.9 million in 2009, $1.1 million in 2010, $1.2 million in 2011 and $1.4 million in 2011.
  
  
• We project Consulting Fees to be $0.3 million in 2008. It is estimated to grow by 20% to $0.4 million in 2009. Thereafter, it is projected to grow by 10% every year till 2012.
  
  
• Depreciation is estimated to be $14,507 in 2008, $19,386 in 2009, $27,324 in 2010, $35,744 in 2011 and $43,457 in 2012.
  
  
• We project Professional Fees to be $0.1 million in 2008. It is estimated to grow by 20% in 2009. Thereafter, it is projected to grow by 10% every year till 2012.
  
  
• We project Marketing expenses to be $0.8 million in 2008. It is estimated to grow by 50% to $1.2 million in 2009 and by 25% to $1.5 million in 2010. Thereafter, year-on-year growth is projected to grow at 15%.
  
  
• Travel and Related expenses has been estimated to be $0.2 million in 2008. It is estimated to grow by 50% to $0.3 million in 2009 and by 25% to $0.4 million in 2010. Thereafter, it is projected to grow by 10% every year till 2012.
  
  
• General & Administrative expenses are estimated to be $0.2 million in 2008. It is estimated to grow by 50% to $0.3 million in 2009 and by 20% to $0.4 million in 2010. Thereafter, it is projected to grow by 10% every year till 2012.
  
  
• Total Operating Expenses comprise of Cost of Goods Sold, Salaries and Benefits, Consulting Fees, Depreciation, Professional Fees, Marketing, Travel and Related and General and Administrative.
  
  
• Interest expense in 2006 was $17,449. The Company had a debt of $1.0 million as on July 31, 2007. For the purpose of this valuation we have assumed that the Company will raise a total of $2.0 million in debt in 2008 to finance its working capital requirement and growth plans. We have assumed an interest rate of 8% and an interest outgo of $0.2 million in 2008 and 2009 and $0.1 million in 2010. We expect Euoko to pay-off it debt completely in 2010 from the cash it generates from its operations. The Company will incur $15,000 in financing charges in 2008.
  
  
• Euoko is making losses and we expect the Company to start paying taxes only in 2010. Effective tax rate is estimated at 20% in 2010 and 35% thereafter.
  
  
• Capital Expenditure is estimated to be $30,000 in 2008, $60,000 in 2009 and $78,000 in 2010. Thereafter, it is estimated to grow at the rate of 5% per year for the remaining two-year forecasted period.
  
  
• Free Cash Flow to the Firm is assumed to grow at the rate of 6% from 2013.
  
  
• We have assumed Cost of Capital to be 13.3% for the Company based on the present industry structure and the risk reward profile of the Company.
  
  

Based on estimated 35.1 million share count the intrinsic value per share is estimated at $3.06. The intrinsic value justifies a significant appreciation from the current level of $2.40 over the medium term.