Companies need Capital to function and if Capital is raised with...

Companies need Capital to function and if Capital is raised with the right investors then it can be a good thing BUT finding those teams of right investors is very difficult and is a lot harder in a market as hard as this, which is severely lacking liquidity. Particularly with a group like Evolution who in my experience have been the kiss of death in every stock they’ve touched that I’ve been involved with. IMO they just spam out a term sheet to a bunch of people trying to fill the raise to generate fees and those that take it are doing so because it’s “in the money “ at the time and have no intention of holding the stock and want to sell it immediately.

Theres not the broader based retail participation atm to absorb the flippers selling and so the stock goes lower as the flippers cut their losses and sell at whatever they can. Evolution get their fees and so dont care how it performs in the secondary market.

I won’t touch anything Evolution get involved with from my own experiences, particularly in a market like this. IMO the fact the company engaged them tells me they had little or no interest
from bigger broking houses which doesn’t surprise me because I don’t believe in managements capabilities for reasons I’ve explained earlier and I think $95m market cap in this market for where this company is at is way too high - how do you value it at that? The lack of liquidity IMO has led to an over inflated market cap and I believe that’s verified by the fact that they’re only trying to raise $2.5m (before costs). It continues a pattern of small cap raisings as every time they raise and try and tap new investors there isn’t the demand as the market cap is too high.

My opinion anyway,

WW