Post by
JonathanJSmith on Apr 07, 2016 11:24am
4MM Financing?
I'm trying to wrap my head around why they would do a 4MM financing deal when they can burn through that money in less than a quarter? The warrants were at $8.50 so that gives them another $2.5MM - that is, if the stock gets higher than $8.50 to "warrant" the exercise of the warrants.
I suspect that Sprint was one of five new direct customers mentioned in the PR. Interesting, they must think that either (i) they don't need more money to survive; or (ii) they'll announce that Sprint has chosen them (potentially huge revs) and expect to do another financing to the public at a much higher price.
If they do announce Sprint explicitly, then based on an MC of only $20MM, we're looking at a potentially explosive stock scenario.
FYI:
According to the FCC site, Dragonwave equipment is being used in serveral links/paths from 01/11/2016 - WQWZ986 through 04/06/2016 - WQXL360. You should look it up for yourselves.
Let's see what afoot...
Cheers,
JJ
Comment by
jollynik6 on Apr 07, 2016 11:41am
Interesting Jonathonjsmith, new to this company,what do you guys see as a good entry point Thanks
Comment by
barneyj44 on Apr 07, 2016 1:00pm
Well as a long time holder I was lucky and sold yesterday at 12 , just got back in at 9.20 , can't say I have been impressed with Allen over the years as Ceo but figured I would take one last shot at this with the recent news and JJ Smith's comments about only doing the $4 million finanacing , full disclosure I have lost more than I have made holding Dragonwave.....
Comment by
birdie22 on Apr 07, 2016 1:26pm
Maybe $4 million for no other reason was all they could raise !