Our boy at WonderFi - dilution made easy with a base shelf WonderFi has a base shelf in place, which facilitated the creation of a highly dilutive at the money program that allows the company to sell up to $10M shares. The market cap is $27M. The stock has fallen from $3.00 to $0.13. It used to trade $1M per day and that is now down to $20k.
This is the genius that thought it a wise idea to pay 140% premium for ETC in one year, load up the balance sheet with debt and saddle the company with another cash flow losing business on top of two others. And when he realized what he had done, he jumped into crypto.
The base shelf is still in place at Quarterhill. They have a $150 million funding shortfall in the next 3 years. Coincidentally, they have the same amount left on the base shelf. Coincidence, I think not.
And market evidence shows that companies that have a base shelf in place, they do what? They use it.
I will not be buying anything here until the base shelf is removed. Neither should any of you.