Without cash flow the next cap raise is going to hurt, from the report:- "The Company will start planning for the next capital raising in Q2 which is expected to be carried out in Q3." The Christmas Grinch and a New Year fizzle to boot.... the great double whammy finale holders have been dreading.
If you are considering buying maybe wait for the next cap raise, for non holders who may not get an entitlement wait a few weeks until after the cap raise to get an even lower price like what just happened. True, that's exactly what happened.... over a 25% discount to cap raise price
Camcord will be used, likely will be a discount to VWAP, more dilution, no sales or revenue being the constant.
Dare say SP will go lower. This company needs around $5 million PA to stay afloat, at 1.3 cents etc that is a lot of shares to add. Some wizards in tight spots like this do consolidations then they can do it all again from a fictitious new high point ......
Maybe the best thing to do is come out with a prospectus and do a huge raise instead of band-aide raises. Do the consolidation, raise $10 million or more like RAC and RAD did with a solid plan ....... do we know:-
Cost of production of Felix?
Cost of production of cartridges?
Sales prices for both above and profit margins?
See, those things are still unclear, we do not know what is expected as far as annual sales to generate what sort of profit over what period of time. We do know the company needs $5 million cash PA to stay afloat but it might need $12million in sales etc to do that. Selling 2 Felix's and 30 cartridges aint keeping the lights on at all...... so with a large pile of useful money they can achieve what is required without holders fearing continual cap raises and simply keep updating progress.
MEM Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
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