Gatekeeper Systems Inc V.GSI

Financing at $1??????

[RogersBulll]

https://stockhouse.com/news/press-releases/2020/08/26/gatekeeper-announces-5-million-financing-at-1-per-unit

[RogersBulll]

Has anyone every heard of such a thing? Sounds AMAZING to me, wow

[HenoftheWoods]

Crazy -had exactly the same thought. And NO finder's fee??!! Wow. I had to re-read the terms three times. Shows you just how undervalued some institutions think we are... Stock cannot but go up on such a news. OK -now let me go to re-read, to make sure I got it right the third time.

[JamesWW]

Crazy news. For sure. Amazing to do above fading value and does solidify a greater value. It is Dilution though. So let's see what the market does......

[RogersBulll]

I was very curious to see what you think. I know you had thought there wouldn't be any dilutive financing... however, this will be totally different. To raise money at a 58.7% premium to market value is substantial and sends a very confident message. Especially the line about it being unsolicited and from one person/insitution. This looks very promising. Not to mention, available working cash

[JamesWW]

Yes. 30 million from septa for cameras to deal with bus lane traffic/fines 

[JamesWW]

My conspiracy theory: placement is to fund a 30 mil deal.  the EOI by septa was to weed out suppliers and enable a direct award of contract to GSI without a RFP.  boom. $1.35 a share. 

[Hpdevils]

I too have never seen this before. Looks like Doug dictated the terms on this. ( Good work Doug ). I am thinking something bigger is coming our way. I think we open minimum .80 tomorrow. Superb news. Hpd

[HenoftheWoods]

My other thought is the following... For an institution to buy in at such a high price, they must have gotten assurances from GSI that the pipeline is extremely strong. This institution is buying for FUTURE earnings, not past ones. I expect another stream of news releases starting in September. Just in Canada, the government announced an extra 2 billions for school safety. Expect more heat

[Ciao]

Minimal dilution, look at current share structure... Another key in this " UNSOLICITED interest"...someone must have kicked the tires and decided that a premium to current market was well worth ther risk relative to reward

[FarmerInvestor4]

Another thing to look at is the Warrants that are part of the deal.  24 months timeframe with $1.10 option and $1.35 strike price (10 day part).  It is a win for the Company... Ultimately another $5.5 Million in timely cash flow. To me, this means that the "Unsolicited Interest" party also sees potential 24 months out as well.  So the attached warrants are worth part of

[laurencelefou]

Head scratcher... the investor or investors must know something that has not yet been made public.

[HenoftheWoods]

This deal is as "anti-dilutive" as it gets. If the stock doesn't pop straight to 90-100 cts, the company could immediately turn around and withdraw much more stock than they just issued.

[HenoftheWoods]

And NO flipping... All securities issued in connection with the Financing will be subject to a four month hold period under applicable Canadian securities laws.

[Aarman4]

So correct me if I'm wrong here..... GSI raises $5mil, in exchange for 5 million shares with $1.10 whole warrants attached. If this all works out, GSI has increased owner equity by  124%($10.5mil), and diluted shares by 10.5%, but the share price is at $1.10 for this to happen, minimally giving us a return of 74% If this doesn't work out, GSI has increased it's shareholder

[mjh9413]

Doing this pp at $1 does not make sense in terms visible cash needs. GSI at May end had ~$1,6MM in the money options and $850K room on their loan plus $4,5MM in receivables (though latter is commonly in  this ballpark). So, is cash a problem? Not that I can see. And growth from such a small equty issue is impossible to gauge and, in terms of current financial performance, would hardly be

[Equity4]

Well, all I can say is that while we are not insiders, any equity raise by share issuance at a premium average of 65% over market price is exceptional! While this is a dilution of 11%, it's also a cash inflow of $10,500,000 and being unsolicited, I am willing to bet tthis investor did their DD and said "I want in based on what I see, and I am willing to pay 60+% over market to do that