$19 MILLION C DOLLARS = EXIT STRATEGYOkay, where is the silver Lining hiding amongst all the angst surrounding the latest financial news BLAST!!!
I am not a finance guy, but once all the money is tapped into it will put the Company’s debt service at about $34 million Canadian (including the $15 million convertible note due in Jan 2021)or about 25-26 Million US Dollars depending on the currency exchange!
They have put a pencil to everything it will take to get them to a point where an EXIT strategy would make financial sense based on earnings and depth of customer base!
4-6 Quarters away from being break even is Q2 2020 up to Q4 2020 or 12-18 months!
To me it seems like a simple read, the company makes almost no financial sense as a stand alone entity and makes a lot of sense as a bolt on to a larger player wanting control of this space!
The deal only makes sense for us little bag holders if the Company can execute on its marketing and sales plan revolving around the Data Center market in Asia and the US!
Kind of a dumb statement to make , but if they are reasonably successful over the next 12-18 months then it feels like a decent possibility someone scoops up all the marbles, pays of the long term debt and hopefully most here are made whole and maybe with a little interest on our money!
So the Drama is pretty well OVER for now and like it or not it is just the reality of giving other people your money, you have no control except to hit the sell button!
They did say some of the money is earmarked for R&D, so who knows what else they might come up with to market!
One thing that puzzled me about the Tencent news release was that they stated the first target was going to be the 25G market and then moving upwards toward the 100G .
Can anyone explain that sentence or 2 at the bottom of the press release ?
Sunk money , dead money, better than bankruptcy at this time and that’s a lot of money these guys are raising again albeit @ a much lower valuation... .15 cents, .10 cents, .05 cents...
Gonna be a while, no sense in obsessing and they have kept the Fat Lady at bay for the foreseeable future))
At least we know what the deal is now...