RE:Are they about to redeem themselves?The passport deal is really bad and they know it. Passport pulled out of the deal not Ausa. If the acquisition went through, Ausa will have no cash left and the stock will be diluted by 30%.
Passport's 2019 rev was 7m
2020 rev is PROJECTED at 10m
2021 rev is PROJECTED at 12m
Now let's be serious. Do you want to throw our last lifeline at a "projection"?
Their rev is 7m with 5m coming from Ausa. So their rev from casino operations is only 2m.
In 2020 most casinos were shut down for 3 months and they are not operating at full capacity even till this day. So do you honestly think Passport will make $10m in 2020?
The deal is a money grab by Scott. He owns a bigger stake at Passport, so of course the terms are biased towards Passport.
Cocoon might be a hit but until they sign with a big Mso, the stock is going nowhere.
RisingUp wrote: There can be little argument that management totally, utterly blew it on Passport - and cut us all off at the knees when we were already deflated by the Folium thing. Don't get me started on that one.
However, it must also be said that they have been very transparent about the numbers on Cocoon - and if you take the time to look closely, it presents a very interesting business stream. The one unknown until now is whether the technology actually worked. I don't know about you guys, but I am heartily relieved to see them in action and appearing to perform well. Very well, by the looks of things. The trend to social distancing is also a positive influence for the business model (in, I might add, a sector that is widely regarded as essential).