GREY:XEBEQ - Post by User
Comment by
GGreenon Jul 17, 2020 11:30pm
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Post# 31284260
RE:Introduction
RE:Introduction Given I haven't seen anyone comment on your XBC VS GRN question, I'll take a stab at it because I looked at both when I did my initial DD. For those that don't want to read the long version: I ended up investing in both but on a 6:1 basis (XBC:GRN). In some of my earlier posts I've commented on what I think XBC has going for it so I won't repeat those comments but I will point out why I thought XBC deserved more $:
- transparency of mgmt (Q calls, Q&A that mgmt addressed in a straightforward manner, thanks to Brandon (IR) for handling the process well on the calls!)
- much better contracts backlog and quote log
- stronger FS - more cash on balance sheet, good p&l to build on and cash flow stmt that is reasonable given stage of development
- didn't like process that GRN went through to get to where they are on TXV (I won't bore you with details but I've been involved in several tranx where you go public through capital pool cos or reverse takeovers and sometimes it just doesn't seem right. In GRN's case they acquired core assets from predecessor co, took some employees, got some $ from investment tranx, issued low cost shares & warrants to ibankers that will make X% return and run on to the next deal etc; company claims X years of long history and many installations in Y countries yet legally they have only existed since mid 2019. Oh yeah and tons of intangibles and goodwill on the balance sheet that in my analysis I don't attach ANY value to.
So why put any money into GRN? Mainly because they are tagging onto XBC's tailcoat IMO. At least that's what I saw in the Dec 19 to Feb 20 Period so at a $0.33/share entry point that gave me more "torque" - a $0.33 increase would be 100% Is that likely? Probably - we're almost half way there. Once it gets to a larger valuation then I'll tap out and continue on only with XBC.