Orbite Technologies Inc EORBF

what do the new 1,762 units represent?

[st_esteban]

The real question in relation to the last press release is, what difference does it make?..

In the schema of things this is almost neutral.  The company has been securing funds from multiple years from many sources and this is just another fund raising.  The continous dilution has been very harmful to the initial shareholders.

If my understanding is correct, the extra 1,762 units represent an additional 1.7 million dollars that can be converted into real shares at a conversion rate of 40 cents in the future,  each unit also has 2500 share purchase warrants that can be exchanged for shares at a conversion rate of 40 cents.

The 1.7 million dollars is debt that ORT needs to pay back by 2021.  This amount has a 5% interest rate.  This seems to me like a very cost effective way of borrowing money at a low interest rate in the current market.  Most companies are paying more of 10% interest to borrow money today.

In terms of shares, all of the above translates into around 15 million shares if the holders of the debt decide to convert to shares.  This is divided into 4.4 million shares for the conversion of the principal amount (1.7 million) and another 11million shares in relation to the exercise of the warrants.

Using a conversion rate of 40cents, depending on how you look at it, this translates into the following dilution:  1.13% (if only the 1.7 is converted) or 2.84% if only the warrants are exercised or 3.87% if both principal and warrants are exercised.

If I wanted to buy or sell shares of ORT,  I'll consider the above and what the intrinsic value of ORT is at the moment and potential value in the future and make my decision based on those numbers.  Do your homework.  GLTA