Reliq Health Technologies Inc V.RHT.H

MoneyNarrative post

[politicat]

The raise certainly runs contrary to expectations, with RHT.V’s CEO having stated numerous times in the recent past that they do not need to go this route. That being said, circumstances have in fact changed, which has led to the change of plan. Unfortunately, that casts company management in a bad light from a communications perspective. What has changed is that they have been trying to get institutional investors on board. This is being achieved with the raise. In addition, recent large contracts have dramatically increased the need for the company to ramp up its staffing to be able to handle the growing demand for their services, and the increasing geographic footprint that needs to be serviced. While the announcement is a bit of a surprise and will certainly serve to cap the stock price closer to $0.40 in the short term, we view the announcement as positive in the medium and long term, removing pressure to pay service providers with options. Some large prospective clients look at the financial strength of their partners, and RHT.V has addressed this concern both from the perspective of cash on hand and participation of institutional investors. Don’t sweat the short-term pain; this may be a sweet deal for the new investors, but a necessary step in the company’s evolution.