RYU Apparel Inc V.RYU.H

Invest to make money and business

[Duediliguyedili]

Chime the stock trading @.02 or whatever does not really mean much in the funding. The funding is about the post money valuation. Yes you can buy stock down hear and it makes a good case for the PP buyer to negotiate a better price but it's really about wether RYU is worth 30 million dollars after the funding. Look at the number , last raise was a few months ago and sales are anemic and although they have cut expenses the burn is still quite high. I would think they are 2 million in the whole . If they raise the max of 10 mill and it cost them 1 mill in fees and whatever that leaves 9 mill . If the hole is 2 mill as I suspect that leaves then 7 mill . If they use 4 mill for inventory as they said that leaves them 3 million. It will take a while to ramp sales up and I am sure the new consultant gets a big fee besides the stock package. Unless Marcello has some sort of other rabbit in his hat it seems like a losing proposition. This is just speculation based on information available to us all . A big consultant might be better off starting a new company with the right business plan from the beginning. I think 10 million would go a long way without all the baggage or just wait for the bankruptcy filing and buy the good parts then.