RE:RE:most disappointing for me in the research report is thatIt's obvious mingzhu never got back to you SG98, but I think he was referring to these comments made by Noel Atkinson within the Clarus research report you kindly provided...
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"Getting to Critical Mass: We Expect Cash Flow from Operations to Cover Capitalized Customer Equipment Capex by Mid-2020
We estimate BeWhere currently has about $3 million in cash on hand and zero debt. The Company ended Q3/17 with $1.2 million of cash and subsequently raised $1.85 million gross proceeds from a nonbrokered private placement of 6.165 million shares at $0.30 per share and likely raised about $0.6 million from warrant exercises.
Quarterly cash operating expenses are in the $500-600k range and should start to scale in mid-2018 along with commercial shipments of LTE-M/NB-IOT transmitters to channel partners. We do not expect capitalization of transmitters to become a meaningful cash outflow until mid-2019 but could exceed $3 million of associated module purchases in 2020. Consequently, we expect free cash flow to be negative until the Company reaches a level of subscriber revenue critical mass that can support the incremental transmitter purchases – which BeWhere should reach by mid-2020. Thereafter the Company should be able to fund new subscriber transmitter equipment with excess cash from operations, and incremental subscriber growth then drives a virtuous circle of free cash flow growth.
We assume a top-up equity raise of $6 million of net proceeds (6 million shares at net $1.00 per share) in Q4/18 and scheduled exercise of $1.9 million of warrants when they expire in 2019 (if not exercised sooner), which together should be sufficient to fund the Company through to positive free cash flow."
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With the last paragraph, Atkinson answered my question as to whether BEW needed to do another funding - not until Q4/18 - by his metrics - a good thing.
Interesting comment per summizing about the warrant exercising of $0.6M. Looks like 8.6+M warrants (good for 36 months at an exercise price of 0.25) are still out there to be exercised (from the Feb/16 RTO & future PP...Sep/16) according to Atkinson of Clarus...
Also of note, Industrial Alliance were part of that Sep/Oct raise per getting a finders fee. There were no warrants attached to this raise, which is a good thing as well as I commented previously. Should also note, perhaps part of the downdraft are investors front running (probably not the best terminology) their shares (selling) into the market leading up to the Feb 6th (6.165M shares) & Feb 12th (1M shares) 4 month hold periods expiring...more food for thought.
sportguy98 wrote: What are you talking about???