right, so the SP will drop to 19 cents or maybe even 15 cents. Mosts CRs seem to have the effect of dropping the SP to the CR price.
The options expire 5 months after they are issued. This seems very short. Likelyhood of the price rising from 19 cents to above 30 cents in 5 months?
To exercise the options a holder needs to have a minimum of 5000. If a holder has less than 12750 shares, then even if they take up the full offer, they will not receive enough options to be exercised. Only choice would be to sell the options before Nov, or the options evaporate.
The purpose of the CR is to provide 6 months of funding (aka till end of CY 2022).
As LDX have negative cashflow. The 2023 activities rely entirely on revenue from the options at 30 cents per option. I wonder how many shares are currently with holders that have less that 12750 shares, and therefore those options will evaporate.
LDX are hinging the entire strategy post Xmas on the share price getting above 30 cents by Nov. Planet Innovation are all in, with a $6 million commitment. Nice. Directors are all in. Also nice. The compensation for the new CEO doesn't seem execessive, compared to some more speculative stocks I've seen. But is still way to high in terms of compenstation with options. IMO If the share price cannot get above 30 cents before Nov 2022, then I assume LDX tries to rattle the can again.
Well, its all a gamble after all.
LDX Price at posting:
25.5¢ Sentiment: Hold Disclosure: Held
