Here is the paraphrased content below:
Ok so had a 20 minute chat with Brandon. Levelled with him. Told him right off the bat what I thought was utter insanity and the collective disappointment of investors. Told him I’m the messenger delivering to another messenger, and to not take it to heart. He gets it.
CFO misspoke. Paraphrased: “What he should have said was we have multiple levers to pull from, and our intention is to explore the first two options we shared, especially using our low interest open credit facility, and one of our options is financing through the markets, but not anywhere near current levels. Any type of financing would be purely for operational growth and scaling, and there’s no need to tap into equity financing at this time, Stephane should have made that much clearer”.
Inmatec is profitable. They don’t plan on selling it, nor was it brought up to get rid of any core assets to raise cash, as they don’t need to currently raise cash.
When asking about margin improvement, it was a lot of repitition of Jim’s points re: centre of excellence or whatever meme name they came up with. Brandon seems convinced that margins will improve. Take that as you will.
I explained to Brandon that all of Jim’s margin-addressing comments were completely overshadowed by the CFO flub, and that based on what I’m seeing it’s in Xebec’s interest to get ahead of this confusion and address the comment. Brandon agreed privately but could not speak to whether this would be addressed.
He also agreed that insiders should be buying at these levels, and that they had an extended blackout period. He’s not allowed to comment on filings before they happen, but seemed to hint at me that several executives were looking into it, no timing provided.
Overall, he expressed his own owes personal disappointment at the share price. I told him I strongly advise that some version of our conversation makes it’s way up to c-level, they NEED to know the difference between being a good cfo and expressing the numbers in a good way for the market. He acknowledged my message, and did not openly disagree.
Then I asked him why the company felt it was smart to perform a couple accounting tricks for q4 just to dial it back in the q1? I also told him that as an investor, I was lied to by management re: legacy contracts. He seemed responsive to this and said that they’re doing their best to be accurate with the impact timing of legacy contracts. He did not address this comment beyond acknowledging that my talking points were valid and that as a shareholder, he's frustrated too. Didn't mean much to me, and the next time I speak with him I'll try and raise this point better.
Overall, it sounds like the company is flabbergasted at the share price, as they believe they’re far ahead of whatever sentiment the market is portraying.
This was heavily paraphrased and I tried to give the most accurate but succinct version of events. The most important immediate takeaway is that there will be NO financing at these levels anytime soon. I hope sharing this was helpful.