OTCPK:DRWIQ - Post by User
Comment by
JonathanJSmithon Sep 26, 2016 8:41am
230 Views
Post# 25277268
RE:I Believe
RE:I Believe Their MC is more than $10MM. They just completed a financing which created an additional 1.6MM shares.
Therefore, 3.6MM + 1.6MM = ~5.2MM currently outstanding which results in a current MC of approx. $2.80X5.2MM=~$14.56MM.
Furthermore, let's not forget all of those warrants that they issued with the last financing that, when (if) exercised would create a lot more shares; that is, Class A and B units will dilute the stock with another ~5.5MM shares when (if) exercised. So, fully diluted I'm estimating we're at around 10.7MM shares (excluding employee options) already.
I liked the comment about the separate PIPE:
---
Concurrent with the underwritten public offering in the United States, DragonWave has issued an additional 63,000 Class A Units on a private placement basis to purchasers in Canada for additional gross proceeds of US$211,050.
---
Some small fry are allowed to participate in the potential. ;)
Not that all the dilution matters much when (if) they announce the Sprint contract. The Sprint contract would put them in the black with a 3-4 fold revenue increase. However, that being said, since they haven't announced it in quite awhile notwithstanding Allen's "30-day" comment, I don't anticipate it happening anytime soon (perhaps not at all). We'll see how Allen handles the Sprint questions during the CC.
I'm just hoping Timmy gets his money back! His cost basis is greater than $75/sh post-split adjusted. If he does, I can put a down payment on that much needed new car!
Cheers,
JJ