RE:RE:RE:RE:MedX Announces Closings of First $2.5 Million of ConvertibleI think this funding is quite unique in that it not only shores up MedX's balance sheet but also it is a note that is due in 3 years. The institutions and accredited investors must have had faith in the cash flow numbers that MedX was at a tipping point and would be able to pay back the note upon maturity. This is a good indicator in my opinion. Also having a stronger balance sheet gves potential large scale customers greater comfort.
People seem to be concerned about dilution. People should focus on market capitalization in my opinion. That is how the institution investor is looking at this investment. MedX is only valued at 27 million dollars compared to the other specialized telehealth companies MedX is deeply undervalued.
Having warrants outstanding does not mean they will all get execised at .20 cents if the stock hits that price. Those warrants have between a year and two to run. If MedX's share price reaches .40 cents some investors may choose to execise their warrants. So that means the shares went to .40 cents since MedX is not a pump and dump that means the company must have made a strong material announcement to have the share price move to .40 cents. That is a good thing. Warrants are really a built in funding mechanism that reward the company if it delivers. If the share price is at .40 cents then management is delivering shareholder value That is positive to shareholders.
I think the newer shareholders see MedX in a much different light than many of the older shareholders who post on this sight.