E-mail from another user... I received an e-mail from another user and thought I would post my answer below.
Sorry to hear about your loss. Honestly, 90%+ of these Canadian micro caps are scams and people pump them to benefit from retail investors that do not do their homework. I do not own any shares presently, I used to a while ago and sold for a small profit as the company was not executing.
My price target is $0.065... so 44% upside from the current $0.045 share price. HOWEVER, they NEED to raise money as they are burning cash every single day, and it is unclear if the new contract will be profitable. This means that they will need to tap the equity markets at some point and issue equity at a discount of the current share price which will further dilute the existing shareholders and thus my price target will decrease further. For that reason I am staying on the sidelines. If I can buy the core business for 1.5x and the cloud for 3.0x, implying a per share price of $0.03, I would be interested and somewhat compensated for the risk, but this is 33% lower than the current $0.045 share price.
Entry Point
Base: 1.5x US$2M = $3.0M
Cloud: 3.0x US0.6M = $1.8M
Enterprise Value (C$): (3.0 + 1.8) * 1.30 (FX) = $6.24M
Less $1.2M of debt
$5.04M of market cap
166.2M fully diluted shares outstanding (from the company’s latest presentation)
Price per share: $0.03