RE:RE:RE:$2.6mln in cash + $2.5mln in MCLD sharesYeah purplexed by this move. Below is my per Q and FY for Agnity. Other than Q1-17 they paid like clockwork. That might be wrong but they stopped providing actual numbers that quater and started providing only percents by the presentation (sometimes the nubmers were way off even after I double checked). Anyway I would never give up $680-750 per year for 3.41 (2.66 + 750K in stock). Agnity's revenue may have grown and then this payment would have gone up. There payout ration was 5.314/3.609 = 1.47 (piss poor IMO). Even if they get the 3.5M extra shares it just is not worth.
| Agnity | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | | | | | | | | $2,625,400 | $984,525 | 3,609,925.0 | | | | | | | | | | | | | Total |
| royalty payments | | | | | | | | | | | 133,417.9 | 133,417.9 | 199,210.7 | 191,114.9 | 194,938.9 | 167,779.4 | 753,044.0 | 158,779.4 | 158,779.4 | 180,496.3 | 180,496.3 | 678,551.3 | 180,496.3 | 158,779.4 | 1,904,288.8 |
| % earned/Q | | | | | | | | | | - | 0.04 | 0.04 | 0.06 | 0.05 | 0.05 | 0.05 | 0.21 | 0.0 | 0.04 | 0.05 | 0.05 | 0.19 | 0.05 | 0.04 | |
| % earned ongoing | | | | | | | | | | - | 0.04 | | 0.09 | 0.15 | $0.20 | 0.25 | | 0.29 | 0.33 | $0.37 | 0.42 | | 0.47 | 0.51 | |
From the below you can see that this payout ratio is abismal! Only one was lower and that was from one where they could have lost the investment completly. Here is their history of buyouts:
| total bought out | | | | | | | |
| Plitique | | | | 251,864.5 | 513,803.6 | 261,939.1 | 2.04 |
| wmode | | | | 1,004,912.5 | 3,145,376.1 | 2,140,463.6 | 3.13 |
| 4tell | | | | 1,090,215.0 | 1,853,365.5 | 763,150.5 | 1.70 |
| Aquam | | | | 2,000,000.0 | 7,520,000.0 | 5,520,000.0 | 3.76 |
| INOVX | | | | 2,137,053.0 | 2,756,798.4 | 619,745.4 | 1.29 |
| above securities | | | | 3,430,000.0 | 6,448,400.0 | 3,018,400.0 | 1.88 |
| DS handling | | | | 1,000,000.0 | 1,650,000.0 | 650,000.0 | 1.65 |
| | | | | 10,914,045.0 | 23,887,743.6 | 12,973,698.6 | 15.5 |
| | | | | 1,559,149.3 | 3,412,534.8 | 1,853,385.5 | 2.2 |
As for mCloud from the release I would assume that they are going to release Agnity from the royalty payments in exchange for something else.
I really hope they use this cash to pay down debt. I think their debs will be reupped at ~12% and even a great paying royalty like Agnity would only be 8% above that.