If you missed out on the hoopla when Bob Sillerman did a deal to acquire a public shell to launch his latest company, Function (X), the stock price has pulled back considerably as shareholders wait for the company to unveil its first product – whatever that is – in Q3. Meanwhile, the company has filed an official report of having zero revenues in Q1.
When Sillerman announced in February that he was buying control of an inactive public company to launch the new venture, shares of the old company quickly shot from a penny to $5.39. There’s since been a 1-for-10 reverse split, which makes the trading range for the past year for Function (X) show up as 10 cents to $53.90.
But since early March Function (X) shares have been trading right around $10 – some days a little above, some days a little below.
About all that is known publicly about Function (X) is that it will have “a particular emphasis on digital and mobile technology.” The first mobile app isn’t to be launched in beta until Q3, so there hasn’t been much going on at Function (X) besides naming a board and hiring some key employees.
For Q1 Function (X) reported to the SEC that it had no revenues, but had expenses of $8.4 million. As of March 31st it still had over $8 million of cash on hand, since its coffers had been filled by the sale of new shares to Sillerman and other investors.
As a result of the reverse split and stock sales, the company went from having 419,200 shares as of December 31, 2010 to 134,842,024 shares outstanding as of March 31, 2011.
RBR-TVBR observation: Despite the financial beating he took from the recession on the real estate side, it looks like Sillerman is doing pretty well this year. His Function (X) shares are still worth a lot more than the meager amount he paid for them and he’s about to be cashed out of CKx Inc., another company he created, at a nice profit. Never bet against Bob.