Post by
ScarletSpider on Nov 19, 2021 9:07am
Two Ways to Finance or Combination of Both
it is very and right now at these formative stages painfully clear this company has heavily relied on equity financing as a way to expense things out and get things going. Without revenue and a steady flow of monies coming in unfortunately this was the best way for the company to proceed a lot of which is actually smart strategically. Unfortunately, there is a history going years back this company did the same thing but it did not pan out in some circumstances like that with being attached to having the mine available to act as an energy provider. Folks some moves will work others will not and that is why there is huge issuance of shares. It was the right move to make. If the company had solid recurring revenue it could have considered debt financing and pay in mostly cash and possibly issuance of shares if needed be but the second option is debt financing and more cleanly no shares but paying interest on the rate borrowed until fully paid off. So there is equity and debt financing as well as a combination of the two. Why do I bring this up? Well here is my thoughts given a lot of what the company does is equity financing historically speaking it has put monies in the form of shares but no doubt is still likely burning considerable amounts of cash while things fall into place but that is where all the things like warrants and options come in as does insider buying all hand in hand. What I can potentially see given the heavy reliance on the dilution is that as monies start to flow in and all the heavy lifting done to lay out a better offsetting future potential as they have with Daymak and whoever else shares were given as payments, there will be less need for dilution and the revenues will strengthen the balance sheet. What I suspect because of huge dilution the amounts of cash deficit is comparably less meaning that the debts of monies is paid through all the shares issued so the cash should proportionately increase off set the dilution and the share value should continue to rise progressively and stably. So while the amounts of outstandings look ugly have a drag on value for as long as offsetting revenue starts to flow in theoretically I see less of a cash deficit overhang and something that should be offsetting by with the revenue. I would as people are saying see what more the company is getting into and was it smart. Right now I don't think the moves were bad or wrong HOWEVER I fully agree the company should now heavily limit any further ventures that lead to any further dilution. They have enough on their plates to advance and keep working to do so. I am invested in digimax global and people over there are just as impatient and again wrongly so just my opinion however although as here I will say management needs to be mindful to only expand out so much without as I agree losing focus and getting things done so I am not disagreeing with that notion what I have is that I fully see this crypto move as a smart one as I do with all other dealings involving battery and energy storage tech however yes the company should look to be putting on the brakes and work in furthering all that it has there is a lot and no real need to expense shares out on new things at this point but if it strategically does to set up Ionix Pro as a publicly traded company I will not be surprised if quite a chunk full of shares will be used for that...again going on the basis of a planned 600 million dilution if 424 or let's say 450 million depending what the company wants to initially start that at less those as well as shares reserved for issuance. I don't suspect the company will be getting into too many more new things at least I sure hope not because like I said I don't disagree with this concern I do with the comments that the crypto was a waste and lack of focus. I already gave a long post as to that. In any case, let's see where things go down the line. I know what we have here in terms of outstandings revenue process time potential I don't need people to tell me that and see on the negative side of things but if they continue to chose to do so they can talk to each other. My posts factor these in but does not either delve on it or see what was needed to be done as a negative...folks this is a venture capital company after all this is what we have bought into along with all the associated risks if we don't like it than venture capital stocks are not for us.
Comment by
Joseisok on Nov 19, 2021 9:24am
You have the "can't see the forest for the trees" syndrome.
Comment by
teetznazz on Nov 19, 2021 3:33pm
and you havent seen your feet for years syndrome. too fat. but keeping working here. Dont stop yet.
Comment by
Joseisok on Nov 19, 2021 3:44pm
I can see my feet, all I have to do is look in the miror.
Comment by
Tryagainfool on Nov 19, 2021 3:31pm
Scarlet what shareprice are you happy and sell at.I year targetprice.