The delay in the loan facility has obviously depleted the cash position and a CR would be necessary to get to the last quarter revenues. They should change their accounts so that the year starts in October!! Someone driving the SP from 3.8 to 2.3c hasn't done any favours to the price the CR will have to be done at and the degree of dilution!!! The only positive is at these prices there is next to no downside. Steadying up the balance sheet alone will be seen as positive enough to get back above 4c. Maybe the CR is also need to fund an unexpected large amazon or best buy order. Great than the loan facility can deal with!! Or maybe to fund a whale. We will find out in 2 days.
Current market cap is $46m. If they raise $10m at 2c there will be 2.4B shares on issue. Thats $48m market cap. At that price, OHMWW is prob priced at $8m with $2m in revenues and break even by year end. BID has $75m mc with $6m in revenue and $5m a year in losses. B/E 2021 forecast. That puts LIFX at a MC of $40m. Thats approx 2018 revenue number and 0.6 times forecast revenue number for 2019. Less tariffs to pay this year and improving margins should show up in the next quarterly. LIFX has 38 global patents and 37 pending patents. What is that worth? What is the LIFX licensing of the chip worth as a stand alone??
IMHO, Biggest risk as a long term holder here is to see someone make a play for them at these ridiculous prices!! Maybe that has been the intent of the seller.
BUD Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
