Redline Communications Group Inc RDLCF

A Steal!

[raglo]

On March 31, 2021, Redline announced the Canadian government had approved an investment into Redline via the Strategic Innovations Fund. This investment brings up to CA$14 million into the Company earmarked for the development of industrial 5G network solutions. In Q3 2021, the Company received $361,000 from this fund. Total funds received under the arrangement were  $800,000  to Nov 11 2021.  This funding was meant to support a Canadian Company’s research and not to support the sale to a US corporation for pennies on the dollar,, the average trading price for the last 30 days before the sale was negotiated was aprox. $0.82 so that is only a 10% premium and a far cry from implied median share price of $3.31 from Redlines own presentation based on the average value of its peers.
This should be investigated.
And who are the 29.7% of shares that is voting in favour of this takeover? does it include the still unexercised warrants that was given to certain share holders for providing a credit line at 10% interest?
Terms of the CDN$7,000,000 term loan facility include: 10% interest rate, serviced with interest-only payments for the entire three-year term (only the first year interest is guaranteed), and the issuance of 3,500,000 common share purchase warrants (the "Warrants"). Each Warrant will be exercisable for one common share of the Company for a period of three years from the date hereof, at exercise prices of: (i) CDN$0.65 per common share with respect to one-third of the Warrants; (ii) CDN$0.75 per common share with respect to one-third of the Warrants, and (iii) CDN$0.85 per common share with respect to one-third of the Warrants. One insider of the Company is being issued 670,500 Warrants (so as to maintain its pro rata ownership percentage) and the issuance of Warrants to such insider will not materially affect control of the Company.
This was done only 11 days after third Qtr CC call when cash balance was US $3.8 million up $1.1 mill. from 2nd qtr.
and the backlog $12.5 mill. 

The Sale was announced yesterday only two weeks after the upbeat 4th Qtr CC.
Redline-Communications-Group-Inc.-Fourth-Quarter-2021-Earnings-Conference-Call-March-30-2022-1.pdf (rdlcom.com)

[raglo]

and if there is any doubt, Avia Networks AVNW have gained US$ 56 Million in market cap so far, since offring $ 12.9 Mill for RDL! What was Management thinking? certainly not what was best for shareholders. 

[Possibleidiot01]

Maybe what they were thinking is it was $6.45 , March 4, 2013 and the stock just slid and slid ( at some point in that slide I sold, at a higher price than today). Good niche technology but I could never figure out if it's superior to standard cellular networks. I do know revenues changed very little in the years I owned. Offer is being  sold to investors as "that the Transaction is