RE:RE:Cantor estimates break even Q3 (EPS 0.01$)backabock wrote: Senseye wrote: https://baseballnewssource.com/markets/cantor-fitzgerald-comments-on-spectra7-microsystems-incs-q3-2016-earnings-sev/72660/
So CF confirms my expectations that we're now looking at 17Q1 or Q2. I need to understand how they aren't going to run out of cash by then. I see a sweetheart deal coming with warrants at 40 cents and big dilution.
Let's assume CF is correct and S7 will lose 1 cent per share for Q3 and Q4. They reported cash of $2.1 milllion at the end of Q2 with a share count of 127 million. So that's a loss of $2.54 million to the end of the year. That's a shorfall of $440,000. The current Loan Facility was $6.5 million and cost the company less than 900,000 warrants, which is less than 1% of outstanding shares.
If they extend the loan facility in Q4 or get a similar loan for $3.2 million (half the current LF) they shouldn't have to issue more than 500,000 warrants, which is hardly "big dilution". By the time that rolls around the share price may well be back to the 60 cent range or higher if revenues reach $5 million, suggested by the 1 cent per share loss.
So I don't see how a $2.3 millin loss in the next six months is a cataclysmic event. A minor hiccup at most as long as sales keep growing.