Yeah look, there are some outright concerns in terms of where the company is at. The way i'm looking at this is a revenue producing startup effectively raising money through a Series B/C capital raise. The company needs to scale up and increase market share and its absolutely necessary to raise this capital to fund ongoing operations.
The fact that Yacov holds 50% of the company makes it very much like a privately held start up, given Yacovs age as the business starts to build i'd suggest he offloads or looks to exit a proportion of his shares to another company as the company grows. In the meantime, it probably makes sense for him to have a controlling interest in terms of the direction of the company. I dont think he'll receive his performance shares and its a very far stretch to imply that he'll get 25mio of EBIT in the next 4 weeks.
I'd suggest the size of the capital raising is not large given current cash burn in the company etc....it is currently restricted by the size of the market cap. Lets be frank, the company needs cash and cash now - so its imperative for ongoing operations to raise this money. Im happy to accept the dilution as it means the company doesn't cease to operate, it will deleverage the company to an extent, it diversifies the investor base hopefully into some sophisticated US based investors who probably have a better handle on how to value early stage M health and tech, and gives the company the chance to fulfill the promise embedded in the MOU's, grow the burgeoning business in the US, and expand operations in China (imperative to its future strategy).
The 20c floor is the min that they'll raise equity and it effectively will give the company the same market cap as it has now - this is worst case scenario, it will come down to book build and where the US investor base values the opportunity in the company - could be @ 20c, but could be more than that, could be more than 30c. I'd be a hoping for an announcement before the raise such as CFDA approval or another contract or the like, but nothing is guaranteed. Even still, forecast revenue in the next 12months on known contracts is ~US20mio - so i like the odds of the raise being greater than 20c.
Using shares for equity to reward employees as incentives is standard practice across most industries and very common in startups (sweat equity) - i dont see this as a negative.
In regards to the delay in the 4E - a resignation of an executive director would be grounds to delay the announcement as far as im aware. I dont think there was anything untoward in the delay other than the fact that Mr Antoniou resigned unexpectedly.
The company is well behind on where it should be mainly due to the significant delay in the CFDA - something that neither the company or many investors here foresaw. This seems to be coming to end game and it is now where the risk reward questions come in.
I still like the risk reward in this company and it appears to be shaping up for growth over the next 2-3 years. Some further de-risking in the company over the next few months will be received warmly by the market.
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