RE:RE:So where is JVJ24601 I'm here laughing at the fools who believe that $13.5m in new dilutive invest is going to make a big, significant difference, when probably 10% of that is paid out in fees to the brokers who convince unsuspecting shareholder to invest.
I see this as a nice pump so the investor can get out with a nice average 40-45% return on their investment in 3 months (stock/warrant blend), which I believe is NO HOLD PERIOD for the stock $0.42 and warrants $0.60. (Per press release: The Investment is comprised of the sale of up to 31,925,595 units (each a “Unit”) at a price of C$0.42 per Unit. Each Unit will be comprised of one common share of Xtract One (a “Common Share”) and one Common Share purchase warrant (each a “Warrant”) exercisable at a price of C$0.60 for a period of five years following the date of its issuance.)
Also...
Didn't any of you read March 9 MD&A on Q2 - Page 14 - 2nd section Liquidity & Capital Resources - first line. It's really hard to miss… “As of January 31, 2023, the Company had negative working capital of $1.9m which includes current assets of $3.2m to meet current liabilities of $5.1M”
So here's my math -
- Dilutive investment. $13.5m
- covers Q2 cash gap. ($1.9 m) - ref above
- less 10% broker fees. ($1.3m)
- less Q3 loss April 30. ($5.0m est based on Q2)
- plus Q3 revenue. +$1.0m est --- and that's a gift (Q2 MD&A: Page 3 first bullet “Accelerated topline growth for our Platform business with approximately $0.7m for the three months period ending January 30, 2023,”)
Estimated Total Cash April 30: $6.2m -7.0m.
Well, that's enough for Q4-Q1 with another Dilutive investment coming March 2024, as we saw March 2022 and March 2023. Q3 MD&A due out June 15.
Or....
Maybe an acquisition by investor MSGG that needed time and the "40-45% blended increase in their $13.5m investment" to make the deal happen... that's $20m CAD as a down payment on a Company now worth $200m CAD.
Seriously, $13.5 to anyone smart enough would see it's just pushing things a little down the road until something can be figured out. And the stock is jumping nicely on that "from people in the know" sharing on the side this is happening. @$1.0(and after MSGG group gets completely out selling stocks and warrant at a 40-45% increase) there could be an Aquisition announcement with a 10% premium to take private. Current shareholders get $1.10. Good for some, bad for many. Good for Evans, Cronin and the Board ... all in at under $1.00, bad for all who invested when it was $1.20-3.00, which I suspect are many here. Good luck Shareholders.
Looks like similar moves over at First Responder and Plymouth Rock Technologies. New investments to push thing a bit more down the road ... lots of back pay due per my earlier post.