Technologies Sonomax Inc SXHHF

RE: RE: What a joke

[GACAB]

Agreed, increase in number of shares has nothing to do with the Benvest financing which was non-dilutive. 

Management informed everyone during the conference call in February that Sonomax's total number of issued shares could increase to 350M if all the company's outstanding warrants and share options were exercised. 

The bottom line is, if Sonomax do follow through and sign licensing agreements with a few major OEM's in the next few months and through this capture only 1% of their estimated market, 350M issued shares (worst case scenario) shouldn't stop the share price from appreciating.  My calculations show that the share price is significantly undervalued. 

Given that the share price rose to 13c in Decemeber on the news that the V4 design and initial testing had been completed, I see 13c as a possible short term target (next few weeks/months max), provided positive news is forth coming on the licensing agreements.

Management have informed me that licensing agreements will be announced in the next few weeks, with more to come by the end of September.  The only question I have is whether the licensing agreements will be with the big players or smaller players in the market.  If the agreements are with smaller players then i'm not sure the share price will appreciate that much (bit like when the Dynamic Ears agreement was announced).  If this happens, the warrant holders may not exercise their warrants which could make cash flow for Sonomax a problem.

Anyway, its a high risk investment, but in my opinion worth it.