Blackline Safety Corp BLKLF

business update and equity offering

[Possibleidiot01]

It appears the company has too much tied up in inventory and the recent growth in sales is oil and gas industry sales where the companies lease the equipment which hurts cash flow.

"However, there is a significant impact to cash flow with a lease generally taking 1.5-2 years for the cash flow to breakeven with a standard purchase of hardware and services where initial payment is made up front."

Cash sales and lease sales eventually have the same margin according to the company.

which brings me to the announcement a few days later of more equity being issued
 

Here's where I lose my mind.

This deal was done at a big discount and favours their major shareholder , DAK Capital. DAK Capital had been buying shares in the $3-4 range until June 16th when they stopped which should have tipped me off that something was going on ( Idiots are slow) . I always had little doubt that DAK would invest more but this feels a little abusive.

[Aquaman11]

Here it goes again, more dilution to the benefit of those who already control/have the majority of the shares ...certainly hope this will be the last time they do such shenanigans and start to get into positive territory and cease further dilution of retail/minority investors.  I understand it takes time to build a company, to develop products, sales channels, etc... but the stretch is

[Possibleidiot01]

I do your like your conclusion and overall post. PI