Warrants and News Today’s NR was a good one and just the tip of the iceberg. Imagine them doing this trial run, proving themselves up, and then working with major players in the marijuana field? I agree with some of what Ventnor says - this isn’t a huge deal but it is a start.
I just checked Sedar and Dm had $378 k of cash on the books as of September of this year. They bought Nexalogy for $6 mil and brought in $5.75 mil on the pp. The buyout of Nexalogy is worth $6 mil but “Datametrex issued 13,817,273 common shares of the Company to the sellers of Nexalogy. “ That would be worth approximately $1.38 mil if the share price was .10 per share. Furthermore “Under the terms and conditions of the Acquisition, $600,000 in cash is payable to the Sellers over a three year period upon Nexalogy achieving certain agreed-upon revenue milestones. “
With the shares issued being worth $1.38 mil, the $6 mil purchase price is then reduced to $4.62 mil. Then reduce that by the $600 k payable to Nexalogy then the amount they have to put out from the pp is just over $4 mil. So they have at least $1.75 mil in the bank. Sound right?
Company insiders picked up over 4.5 mil shares of the pp. I guarantee they won’t be exercising them anytime soon.
Those that participated in the pp have a vested interest in seeing this company do well and they believe that will happen or they wouldn’t have invested. Given the cash position of Dm, I highly doubt that they will accelerate the 15 cent warrants.
I’m looking forward to the deliverables (milestones) from Nexalogy coming out bit by bit. They have a significant revenue stream already with the government agencies and Fortune 500 companies they are doing business with. That now belongs to Dm further reducing the need for Dm to raise money.
Though I can’t guarantee it, I expect a steady stream of news over the coming weeks and months. Dm has made a significant investment now and wouldn’t have done so only to let the share price flounder. My thoughts. Cheers.