GREY:SYXXF - Post by User
Comment by
nostrilon Mar 19, 2015 12:52pm
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Post# 23539155
RE:RE:$3 million loan from Van Eden
RE:RE:$3 million loan from Van EdenAgree that this is good news.
I still think that there will be a dillutive equity issuance at some point: "The bridge loan has been put in place to ensure the continuing operations of the company and allow it to proceed with the construction of two additional realSens™ instruments until such time as more permanent capital can be put in place."
However, the $3m loan is a big postive for me because:
1. It is a vote of confidence - you don't provide debt unless you are confident that the firm will reach self sustaining profitability.
2. PVE becoming executive chairman means that he is legally obligated to act in the interest of all shareholders, rather that simply look after his own investement (Synodon doing a private placement with him at a deep discount was a major concern for me).
3. With $3m the company now has more time to raise capital. This can allow it to find and announce new business. This shold raise the share price and ensure that any equity raise is less dillutive than it would be today.
Good luck everyone
N.