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 Victoria Internet Service (OTC BB:VRIS)

Thursday, January 12, 2012
Reverse Merger Activity
On 12/07/2011 became a public entity via a reverse merger transaction.

Company Snapshot:

Primarily engaged in the business of the rental of vehicles

Industry Snapshot:

Vehicle sales in South Africa were as high as 650,000 units in 2006, but have declined in subsequent years first as a result of high interest rates in late 2008 as a result of general world economic conditions. One in two vehicle finance applications are declined by all financiers because of poor credit. Management believes that these factors have led to a pent up demand for new vehicles and this demand is reflected by the fact that automobile sales grew 11.7% in November 2011 as compared to November 2010 and were 49,499 units (Source www.automotiveworld.com - parts of this site require a subscription). This represents an annualized rate of almost 600,000 vehicles and may indicate a longer term upward trend. We believe that we offer an opportunity to acquire vehicles to fill this demand that is not ordinarily available for persons with limited credit history. Currently the business is able to only able to supply 1/70 of its inquiries.

Post Merger Share Calculation:

  • 233,750,000: Pre reverse merger outstanding shares
  • 205,000,000: Shares cancelled as part of the Share Exchange
  •              Zero: Newly issued shares of Common Stock ($150k cash payment) 

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  107,500,000

Financial Snapshot: February Year End

2011 vs. 2010

  • Revenues:$2.1 million vs $2.0 million 
  • Net Income: $400K million vs. $266K million 

Six Months (August) 2011 vs 2010

  • Revenues: $1.2 million vs. $1.0 million 
  • Net Income: $154K vs. $350K  

Pro Forma Valuation:

  • Trailing EPS: less than penny 
  • Trailing P/E: n/a