Question about financials This stock was promoted on another board I followed.
Looked into it, but had questions about how they will finance the plan
The most recent financials say they have less than 200,000 cash.
I found this in the financials:
"The Company has financed its operations to date through the issuance of common shares. The Company continues to seek capital through various means including the issuance of equity and/or debt.
As disclosed in the “Description of Business” section of this MD&A, the Company closed its QT with KWESST on September 17, 2020. As part of the QT, the subscription receipts issued by KWESST on July 9, 2020 pursuant to a brokered private placement (the "KWESST Subscription Receipts"), were automatically converted, into shares
February 2019 was mainly due to the
of KWESST. The private placement which was completed through PI Financial Corp. as agent, consisted of 4,409,553 KWESST Subscription Receipts issued at $0.70 per subscription receipt for gross proceeds of approximately $3.1 million.
Following the completion of the QT, there were 41,266,821 shares of the Company outstanding, of which 40,367,678 were held by the former shareholders of KWESST (representing approximately 97.8% of the outstanding shares of KWESST) and 899,143 were held by the shareholders of Foremost prior to the QT."
Sounds like they need a lot of money they don't have so you can expect lots of shares to be issued -which dilutes existing shareholders
I see here people saying they are undervalued , but they have no assets and no revenue so how can you compare in that basis?
ok so it's a pass for me -but maybe someone could explain the business case using math rather than just the story....