RE:More dilution comingDukeDilligence wrote: MCLD is plauged with cheap paper and will get worse this week with another financing coming... Horrible management will dilute this company into the ground.....
I'm afraid our friend Duke is lacking a little business acumen here. Duke is referring to the Preliminary Short Form "Base Shelf" Prospectus that was filed on SEDAR last night for $200,000,000.
What Duke is NOT telling you is, this is a "Shelf" prospectus and will only be used if required. Required for what?......Acquisitions! I mean really, look at the amount of this future financing instrument.....$200 million. That sum of money is NOT used to pay salaries or keep the lights on. :)
This actually excites me, because good quality acquisitions grow a company and shareholder value. For example, mCloud bought Fulcrum for $39 milion [cash and shares] and are projected to generate $35 million in Revenues this coming year. At a Price to Sales ratio of just 2, that now values the Fulcrum deal at $70 million!!
I believe someone posted here hearing the CEO speak of more acquisitions soon during the recent webcast.....so all of these events make total sense. So I say....bring it on!