Post by
politicat on Sep 28, 2023 11:57am
MoneyNarrative post
The raise certainly runs contrary to expectations, with RHT.V’s CEO having stated numerous times in the recent past that they do not need to go this route. That being said, circumstances have in fact changed, which has led to the change of plan. Unfortunately, that casts company management in a bad light from a communications perspective. What has changed is that they have been trying to get institutional investors on board. This is being achieved with the raise. In addition, recent large contracts have dramatically increased the need for the company to ramp up its staffing to be able to handle the growing demand for their services, and the increasing geographic footprint that needs to be serviced. While the announcement is a bit of a surprise and will certainly serve to cap the stock price closer to $0.40 in the short term, we view the announcement as positive in the medium and long term, removing pressure to pay service providers with options. Some large prospective clients look at the financial strength of their partners, and RHT.V has addressed this concern both from the perspective of cash on hand and participation of institutional investors. Don’t sweat the short-term pain; this may be a sweet deal for the new investors, but a necessary step in the company’s evolution.
Comment by
lscfa on Sep 28, 2023 12:03pm
Investors will now be more cyclical of contract announcements as new clients will mean more revenues as well as more costs.
Comment by
EdinColorado on Sep 28, 2023 12:29pm
I wonder why Stockhouse can't produce an editing option like every other social interaction platform has? Looks like they are wedded to late- 1990s technology.
Comment by
Lifeboat1 on Sep 28, 2023 12:25pm
Wow that is an amazing business revelation. Adding new business is not free.
Comment by
Peggy123 on Sep 28, 2023 12:37pm
Very well stated. IR response to me earlier explains some of the reason. It will rise