RE: $25 Million Bought Deal FinancingDamn. That's what I was worried about after their April 22 earnings (link to my post here
https://stockhouse.com/companies/bullboard?symbol=v.scr&postid=30944154 )
It looks like they need the additional financing due to cash concerns. This deal was likely in the work for a couple of months so they must have realized this earlier in the year, very soon after the shutdowns. I wonder if they knew about this before their April 22 earnings release, since at that time they said they had enough runway for 12-18 months.
Luckily it's not THAT big of a discount from the current stock price, but it still acts to dilute the long term shareholders (us!) and will likely act in the short term to create downward pressure on the price. We might have some good entry points in the coming days/weeks for those looking to add to their positions. Just be careful.
The pressure will be on them to perform this quarter with what they have now, i.e. NJ. Colorado likely won't make any impact this quarter - remember, this quarter ends on Aug 31 and they won't be live there until late August. Same with Indiana.
The good news is that they showed some very good user retention and gave us some indications that users are gambling a lot with sports back up, and advertisers are back on board. Let's hope that continues for a VERY strong August and rolls through strong the rest of the year.
Keep your fingers crossed, the next 25 days is crunch time for SCR. We just won't know until their earnings in mid/late October.