Public Offering Proceeds ConfusingCan someone help understand this? All this is from the 2nd Q financials available on Sedar. Issued 8,500,000 shares at $0.60 each for $5,100,000 gross. Costs to issue are $422,000 so net proceeds of $4,678,000. I'd expect that to be shown as issued share capital dollars.
The Statement of Changes in Equity for the public offering shows $3,609,000 of proceeds for issued capital and $788,000 of proceeds for warrants. None of these warrants were exercised according to the Q report. So why are some proceeds from the shares issued characterized as proceeds from warrants? And if I add them up I get $3,609,000 plus $788,000 for a total of $4,397,000. There's $281,000 of proceeds gone missing. Did we tip someone $281,000 for doing a good job?
We did tip the new director 100,000 share options at $0.51 each on August 4. Lucky guy - that's lower than the shares issued at $0.60 each but fortunately for him the shares traded that day closed at that price.
We continue to account for the non-refundable, no strings attached Baxter milestone payment over 9 years. It's a massive liability on the balance sheet that eclipses the proceeds (whatever they are) from the public issue. We shall work hard to earn this milestone each and every month so we get to keep it. Oh hang on we get to do that anyway.
Not much revenue in the quarter. Thought Dialco would be selling SAMI like crazy given the CRRT shortage in the US. Maybe management can now turn its attention to generating revenue from the products we have - SAMI and EAA come to mind. How about it fellas?