RE:RE:RE:News - PP Increase and moreI'm sure Burns will be buying all of the shares back or he wouldn't have put this in the news release. No worries.
The proceeds from the sale will be used to subscribe for a corresponding number of common shares under the offering. I agree it could have been handled better. Like you I'm focused on what will appear in the Q2 numbers. After listening to the video podcast post, it sounds like they will have no problem maintaining their strong ramping up of revenue.
kidl2 wrote: I don’t detect any odor BUT I do detect more evidence of missing public company “savvy”.
Pricing of the PP:
They could have easily waited with the announcement until they had more of a chance to shop the idea around. Had they done this, they would have announced a $0.09 PP which would have still been at or even slightly above market. The market would have liked it just as much (or as little) as the $0.10 PP as the $0.09 price tag would have still been better priced than the vast majority of PPs which tend to come at a substantial discount (10 to 20%) to prevailing share price.
Michael’s convoluted sounding share shuffling strikes me as nothing more than tax related manoeuvring. He / his group capped potential capital gains taxes by selling 3.3 Mil shares and deferred part of future capital gain taxed via the $0.15 warrants assuming he / his group take part of the PP.
With an (unnamed) insider taking up more than 25% of the PP, insider holdings will actually increase slightly even if Burns and his group don’t take any of it which is highly unlikely.
My summary take ... Nothing “evil” about any of this. Just not handled very well in terms of public perception.
“Smart” companies either keep their mouth shut until they are certain that there is no longer a potential foot in it or they under-promise and over-deliver.
What UAV did was not very smart. But it didn’t do any serious financial damage.
PS: With the scheduled June 21 PP closing and the shortly thereafter Q2 results, the ½ cent jockeying will likely continue for another 2 weeks.
PPS: With the near term cash needs out of way, my focus is back on Q2 share based compensation.