Hi all,
Starting due diligence on this company, as I came to it indirectly,.
So take this as being naive, but in my checklist, I start with finacials, share structure, and related party transactions.
Also note-I post on facts only-although some take factual discussion of finacials to be negative-according to a value based approach it is objective and fact based.
The first area I had questions relates to the growth in shares, warrants, and likleihood of increasing share issuance to fund operations.
In terms of shares Outstanding:
Significant growth ~7million to ~50 million.
Insiders have been granted almost 10 million shares in the last 4 months.
This growth is providing financing which they require to survive (as indicated on the MD&A) but is also dilutive of existing shareholders.
As part of the refiling for errors in the financials it is noted in the MD&A:
Share-based Compensation The Company has identified an error relating to the vesting of stock options, which resulted in an understatement of share-based compensation for the nine months period ended September 30, 2019.
Source:Sedar.com
There were other errors related to the filings with the Ontario Securities Commission, and a change of auditor.
Change of auditor and announced refiling of financials
https://www.osc.gov.on.ca/documents/en/Investors-Errors-Refilings/er_nr_20221117_stagezero.pdf
| Filing Date | Transaction Date | Insider Name | Ownership Type | Securities | Nature of transaction | Volume or Value | Price |
| Aug 10/20 | Aug 10/20 | Glorikian, Harry | Direct Ownership | Options | 50 - Grant of options | 500,000 | $0.055 |
| Aug 10/20 | Aug 7/20 | Solomon, Carl | Direct Ownership | Options | 50 - Grant of options | 100,000 | $0.055 |
| Aug 10/20 | Aug 7/20 | Riggs, Rory | Direct Ownership | Options | 50 - Grant of options | 3,500,000 | $0.055 |
| Aug 10/20 | Aug 7/20 | MacRae, Garth A. C. | Direct Ownership | Options | 50 - Grant of options | 500,000 | $0.055 |
| Aug 10/20 | Aug 7/20 | Howard-Tripp, James | Direct Ownership | Options | 50 - Grant of options | 5,000,000 | $0.05 |
Canadian insider.com
What do longs think of this?
Did you dismiss this because of the growth potential?
To keep this post from getting too long-will do a sperate post on the revenue/loss metrics, if this is worth it