Post by
Equity4 on Mar 10, 2021 12:11pm
New financing and share lockup over...
Looking for thoughts, but SHG has only $7.0M cash O/H after all announced acquisitions are complete and the promise of $200M run rate by the end of 2021. The current run rate of $56M need around $150M more, and the cost of that revenue at 4.5x's EBITDA will likely be around the $100M mark in cash and shares. If we say the cash /share deal is 50/50 we need to raise another $50-$60M cash. Based on todays SP, this means 75-80-m shares plus fees.
As well, on March 31 26,250,000 shares come out of voluntary lockup from the Sept.2020 financing @ $.15. This will definitely affect the SP short term at that time.
Love the model, but I'm in a holding pattern for now.
Comment by
bayoubucks on Mar 10, 2021 12:26pm
Why aren't you giving any value to the organic growth?
Comment by
Equity4 on Mar 10, 2021 12:39pm
Organic growth is a forecast for the acquisition AFTER deal completion. And while I agree that it would be accretive. that's a different calculation. I am simply looking at shares/cash required to get to the $200M run rate...