GREY:EPWCF - Post by User
Comment by
inviolablspiriton Jan 08, 2021 3:11pm
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Post# 32255989
RE:Warrants
RE:WarrantsI don't get much time throughout the day to respond, so thank you Smokey1958. Yes, warants will certainly add to overall shares so it is diluting, but you do get the value of the raise of capital, which in the right hands can bring far more value to the company than the decrease in share price due to the dilution with all things are equal. Steve has already mentioned that he expects to take about $5 million of that money raised through warrants and turn it into a 20, 30 or even a 40 million dollar value to the company. Look at the aquisition like Kai labs. Kai labs has already paid for itself and then some since the acquisition in October. There's no doubt that it helps that Steve didn't need to dilute shares to do it, but you don't always find gems like that. Part of Steve's expertise is his ability to find companies that trade at 1-1.5x earnings and turn them into 10x earnings. So even though the stock has been diluted through these warrants, the value Steve will bring with that money to the company will exceed the dilution. So I do expect the share price to continue to climb substantially. I don't suspect Steve will need to dilute anymore after all the warrants are exercised because acquisitions like Kai labs, COVID tests, travel bubbles, new clincs should bring in more than enough to continue expansion of the company.