illumin Holdings Inc T.ILLM

Brutal day!

[Wansfell]

Wow!  Not the nasdaq debut we all hoped for.   So, I'm trying to pull some positives from this fiasco... and I do call it a fiasco... even if it is only so because of the mixed signals that the capital raise sends.   

We were told we were well positioned to handle growth with over 20 million in the bank... better than ever in the history of the company.   No M & A targets (viable ones anyway) but lots of phone calls incoming... wanting to be acquired, but prices are unreasonable... I think Tal called them crazy.

Focusing all attention on developing Illumin... and to be honest, that's exactly where it needs to be placed.  The company has no need for the distraction of an acquisition at this critical time.  

So, where is the positive?   As far as price action, its about as low as the underwriters can allow it to go or they can't fill the subscription... so, expect it to be above the 10.15 through at least the 14th...  We've experienced most of the pain already.

Another positive?   Working capital triples.   This means that management anticipates a need for that working capital which sends the signal that Illumin is gaining traction.   For Illumin to be the "real deal" that management tells us it is and that we all hope it is... this means that its going to have to be increasing revenues by multiples quarter after consecutive quarter... explosively here in the early stages while it is still small.

Management has indicated that they were targeting whales this year... perhaps, just perhaps, they have started landing a few.  Last quarter they landed Mercedes Benz.

Management has made good enough decisions to get us here... even though this one (raising capital at this up-listing) doesn't feel very good to us.   We're still in the same positon as we were before... waiting on execution to translate to wealth for all of us.

I'm not pleased by the capital raise since it was at the expense of us existing shareholders both Canadian and US (OTC).   I'm holding my shares a while longer... and going to give management the benefit of the doubt... but going forward until the reason for this action becomes evident... management has lost a little of my confidence...

[growthnprosper]

I agree, I think the capital raise was a surprise after they said  they had lots of capital, so let's see what they do with the new money. 

[fdfd12]

For some reason, you have to raise capital to get on Nasdaq. PYR did the same thing when they wanted to go to Nasdaq