TSXV:POI.H - Post by User
Comment by
StyllLerningon Dec 02, 2015 3:44pm
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Post# 24347916
RE:mmmmm
RE:mmmmmI will admit I am surprised by the method of financing they are going through with considering the mention of a possible US investment or 'creative' financing with clients. My suspicion is it was a tactic used to buoy the SP while negotiating the best terms they could. <br/>
However it was a necessary evil and you can say what you want but they were able to raise 9 million dollars in current market conditions. As mentioned in an earlier post (Nov.4) I figure they will need about 15 million to get to CFP (predicting Q117). I had suggested a 10 million raise now and a 5 million raise in about 9 months. It looks like they are trying to get to bridge the time to CFP in one shot by doing 9 million now and hoping to convince Euro Pac and Salman to exercise warrants in the near future (that's the only reason I can see as to why the warrants are so cheap - but we will see) It gives the investors a bit of an insurance policy on what Slyce is promising them. They will not want a further dilution if the selling price is even slightly over .22, so in all likelyhood would be convinced to cash them in. <br/>
That said, IMO Slyce thinks they can get to CFP for 13.5 million dollars (not far off my 15 million prediction). On earlier comments I still think the company gets to EPS of about .10 by YE2017 which puts the SP conservativiely at $1.00. I still like the potential but need resolution on the 'red flag' concerning discussion about other financing opportunities. <br/>
(Do not think buyout fraud had anything to do with mgmt as they would know that would only hurt SP short term)