OTCPK:VPYYF - Post by User
Post by
93Darkhorse93on May 21, 2016 9:59am
104 Views
Post# 24895016
Thoughts on Timing and Amount of Bought Deal…
Thoughts on Timing and Amount of Bought Deal…Looking at the amount of money that was raised they only raised enough to fund the business for about a year given their cash burn rate.
However it was very positive to see insiders buying in 270,000 shares of the bought deal or about 7% of all shares that were offered. The alignment of management and shareholders by purchasing shares is always encouraging.
But why only raise 4M, I have a bull and bear case and I can’t figure out which one is more reasonable.
Bull Case;
They only raised as much money right now that was needed to fund the business for the short term given the depressed valuation of the SP and plan on doing another possibly larger raise when the rollout of ARC continues and hopefully the SP will be at a high price.
Bear Case;
That’s all the money they could raise, the street doesn’t believe on the rollout of ARC and they will have to continue diluting shareholders given their burn rate for the foreseeable future at lower and lower valuations.
Which one is right? I tend to lean to the bull case but the price action says otherwise.