RE:RE:RE:RE:Breakout investor video - MGT discussion update.....link be if they raise capital in order to make a profitable acquisition with favourable terms, it is a mute point. One washes the other out. I'll gladly accept a capital raise under these conditions.
Hoover69 wrote: Thx B2B. Agree 100% re the uncertainty comment. I still think odds would be 65% to increase LOC versus 35% issue shares. Anybody else have thoughts on this? Thx.
besttobe wrote: Hoover wrote " Do you agree re the comments made about the share capital raise and the need to stop talking about it if they do not plan to do? "
Simple math tells me they will need to do a cash raise in order to meet their year end target. Thus either early 2023 or late 2022 they will have to do a money raise depending on whether they meet their guidance or not. IE last LOI not closed.
The money raise will either be by share issue or increasing the line of credit. I am leaning that they will more likely do a share raise than increase the line of credit, for reasons previously mentioned, MGT also mentioned possible raise and also that they have a " soft " bank agreement that did not sound binding nor favorable. The company does not have enough inventory/AR collateral nor enough FCF to support 100mil LOC on favorable terms. IMO
In other words it is in doubt whether they will do a share raise or not, which the market doesn't like uncertainty.
All just my opinion of course. We shall see.
Goodluck to you...