TSXV:TRL.H - Post by User
Comment by
Contrarian333on Feb 16, 2020 12:26pm
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Post# 30697256
RE:THis is/was a horrible move.
RE:THis is/was a horrible move.I do not think there was an alternative other than Ian continuing to drip out support. Thaat was not going to fund the plan and certainly was not going to result in an improved share price. My understanding is that $20m is needed to fund the initiative of standing up a US sales force. I had always assumed 100% dilution, on the way to successful U.S. penetration, obviously this is more. However, if you stick with the same U.S. penetration assumptions (I had used 10%), give that revenue a comp multiple, or look at it from an EBITDA margin perspective and give that EBITDA a comp multiple you still come up with an intriguing future share price even with this amount of dilution without considering any other markets and/or products utilzing their technology. I know some of you have cost bases that are much higher and I understand your frustration. However, the best way to fight the dilution, and the way to protect yourself against what some of the more machiavelian posters on this Board think is Ian's agenda - a take private transaction - would be to buy more shares on the same or better terms than he just committed to which is immediately available to all.