Jbourk
Thanks for that. It is reassuring to have some knowledgable guys around
I have zero issue with the admin expense, I highly suspect it is as you say a precursor to the major deal and an associated expense/deposit/option
For those complaining now, at the time the sophs paid 1c the company would have had next to no cash and $1.9M in liabilities, yet they still were prepared to pay 1c for what they saw ? Makes you think what it is. Unless of course the sophs were divs and didn't know about the debt because they couldn't read an annual report, and had no idea about cash balance as they couldn't read a quarterly, maybe that's it's ?
Wildly speculating, I imagine the plan is to release details of the asset now they have control, we will learn of some deposit or option paid and they'll seek to roadshow and promote, before raising next tranche of funding higher
For those stating a raise is imminent, that is simply misleading. They ran up $1.9M of debt previously. The new owners may prefer to take on debt for the time being and promote the asset to raise at higher levels then dilute themselves immediately after putting in the ground work to secure the shell - again, just a thought
And for the record, when NXR announced their wavefront investment, they were running on empty. They has $205k as at 31 December 2013 with $140k quaterly spend.
4th April 2014 was the day they released the news, they would have been just about broke. They had a high the day before of 3.8c, so with some 65M shares on issue, a market cap in excess of $2.5M and zero cash. They raised a small tranche of funding at 2c, which looked to be getting the right parties set, and then the bulk at 5c, a 2.5x run, which still saw it run to 8c and they do not yet control the technology
If they announced they were buying for example a medical weed business (not that they are but for argument sake) do you think the balance of $56k or the incoming asset is going to be the focus of the market ? Now if the asset is worth $10M on paper and they are only paying $4M for example, still think the market is going to not pile in just as they did every other tech play with minimal funds
I look forward to picking some more up Tuesday
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