The value behind the Medi-call Acquisition I am a 300,000+ shareholder. I understand the sentiment, and to a degree the resentment shared by shareholders, behind the vague nature and lack of details behind the 12million spent in shares towards Medi-Call. It is frustrating; however, at the same time we are not privy to the inner workings and decision making of the board.
As much as we are frustrated by the vagueness of the News Releases, I think Marshall tries very hard to be as transparent as he can. In the end, with penny stocks, you have to put a lot of faith in the management.
As an investor it is on you to do your DD. It is on you to decide your risk tolerances and the indicators you use to decide to buy and sell.
So....what could be possible reasons for such an acquisition ? Share dilution keeps a necessary monetary cushion in case of unforeseen market changes, gives you assets to expand AI aggressively and allows money to funnel into the new sector of Telehealth developments. That is moderately clear. But why 12 million for something that seemingly has little revenues in the past?
My hypothesis ( I am only throwing an idea out there to spark conversation ) is that it was mainly for the quick access to the medical licences. We all know how fast the government and Health Canada are at things... it can take years (look at our test kit approvals). Now.... why would you pay an inflated price for a licence ???? Perhaps.... just perhaps.... there is a very large group... a lucrative group... of .....ummmm let's say an actors union for example, that has specifically said that if you as a company had a certain subscription telehealth product, they would immediately sign multi-million dollar contracts for thus stated product.
So if you could shave off a year of regulator issues and you figured you could get a higher ROI on the 12 million.... why would you not do it???? All I am saying... is we just don't know.... but I am putting my faith ... and money behind DM in the hopes that they have a bigger plan than what us, whom are outside the boardrooms, can see. Perhaps it is a buy out? There are numerous scenarios and it is not always in your interest as a company to show your hand. Managements first job is to grow the company, not have to respond to every doubter and nay-sayer.
Happy investing and enjoy the rides.