Let me preface this with- please correct me where I am wrong as I am likely confused.
Little bit of an overreaction for a cap raise imo.. nearly 200 very loaded comments on why the company is worthless + now we have harvey spectre over here instigating litigative action lmao.. the major item to correct here is that the company is not suddenly worthless- its worth roughly 30% less than pre Ann , maybe circa 20% actually given how brutal the replaced CN deal was..
Pre announcement it was assumed we would be funded with 10mn cash on some quite brutal terms- but minor dilution. Those terms have changed to ease the pressure on cashflow, with the trade-off being ~30pc in dilution... A 30% selldown is to be expected with the dilution with each share now worth ~30pc less, less new cash on hand... - what is not to be expected is a complete 180 from the somewhat calm we had in here before today.. Assuming the full 5MN is funded over the period, the only thing I would really be concerned what number comes from the SH entitlement & then comparing that with the Sept 4c to reevaluate runway..
The only outstanding item is the differential between pre ann runway and post Ann runway- the dilution is just bad luck and was likely the only pathway to funding to take..assuming no fraud from management- with the deal collapsing on Tritons end.. My major assumption is that pre and post Ann leaves the company with relatively similar fundamentals-- 30% in dilution and maybe the sour flavour of deception from Mr Dean not revealing the collapse of the CN deal.. but otherwise if we achieve close to the 10MN in previous funding- the only real punishment here is the 30% in dilution, which while not pleasant, comes neatly packaged with the allure of riches from high risk gambling (investing).. its just a part of the business.. If unexpected BS is not in your realm of tolerance- try a reit or metals... 2/3 years in to a startup & maybe a few questionable decisions here and there from what Im assuming now is a relatively novice CEO in Dean.. all part of the experience and nothing out of the ordinary.. It must not be forgotten that compared to what hes trying to accomplish- the scale of Deans previous businesses, while executed and exited successfully,.. were just backyard operations.. at this stage- i will be putting decisional errors down to teething pains as he settles into his role as commander in chief.
30% sucks- but its better than not being funded at all./ right?
lemme know ur thoughts : )
DW8 Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
(20min delay)