DW8 Growth, page-15206

Maybe take a break and reflect before you post more comments that aren’t exactly up to par. Not baiting you, simply pointing out the inconsistencies in your comments of late. You’re free to change your mind about the firm and previously held beliefs, but be objective and truthful when commenting, rather than claiming things that make you feel better believing you’ve been misled when the reality is somewhat different.

Go back and revisit all stats the firm was delivering to mid-2021 before Parton was announced. They were growing – growth had not flatlined as you now claim. This may not seem like a biggie to you but most of your comments over the past days have been highly emotional and not exactly objective or reflective of all facts, but rather assigning blame to others.

First red flag was lower Q3 FY21 revenue resulting in a dump from peak SP at the time & it has never recovered. Seriously?!? The seasonal dip in revenue triggered the pullback from trading at peak valuation of > 150X TTM revenue – which btw was a peak ATH for many stocks who since got and remain substantially down via last year’s high?! And this for DW8 was due to the seasonal dip in revenue?! Seriously?!?! This wouldn’t even hold as an argument if there was an appropriate market context in which to frame the statement.

I understand you may be salty but objectively realizing that the shortfall gap vs. your own expectation is due to your perspective, not necessarily to what mgmt. communicated and that is important. Management never guided specific revenue targets aside from their aspirational $1B GMV objective which they acknowledged doesn’t happen overnight. So all growth expectations are simply the result of one’s own wishful thinking at worst and reasonable modeling at best. Mgmt never said that there wouldn’t be another raise required, they simply said they believe they have enough cash to get them into the calendar year 2023. You've been going off your own interpretation on that and failing now to recognize that exogenous factors that lay outside of mgmt control may impact the assumption are outside of your reference framework, instead you've been deceived.

Based on that mgmt guidance a number of people who actually ran the figures extrapolated they’d require cash sometime in 1Q 2023, which means they need to raise beforehand – as you cannot wait until the last day when your cash is all gone. With markets and funding conditions having markedly deteriorated and mgmt encountering a more challenging environment impacting their financials, they did the right thing for the firm and its owners and sought the best possible financing options that keep the options open for the firm while not ***ing equity holders outright.

And that’s exactly what would have happened as the immediate result of an equity CR (the only alternative to a CN) that would have had to be priced at an attractive 35-40% discount to the recent 1.8c SP and come with tons of sweeteners considering the cap structure and most recent CR experiences to entice any investors who'd immediately have sprinted for the doors to recoup their funds post CR. Most comments so far failed to realize that mgmt. actually made the prudent and imo CORRECT decision that protects current shareholders as the alternative option would have already played out very badly on Friday, not to mention today and this week in what would have been an equity death spiral. It really makes sense to think multi-dimensional, not straight line with the wrong metrics when commenting and actually doing some proper research into all implications, risks, and benefits.

You are 100% entitled to your opinion, as is everyone else. But maybe rather than just giving in to the immediate emotional triggers take a step back and look at things objectively, even if just to learn something. I am not disagreeing the Kaddy acquisition came at a steep price, but play out different scenarios more than one node down the decision possibility tree to see where you’d end up eventually before casting a stone. And please revisit the communication on Project One that has been very consistent in highlighting when the impact will/should be visible. I acknowledge that we could get to the end of the Sept quarter and there’s not been a noticeable impact on cost savings, in which case you could hold on to some of your arguments, but until then a number of them are rather premature, incorrect and not necessarily the best reflection on you as an investor trying to reassign responsibility. We all make mistakes and best to own them to learn from them rather than assign blame. If this investment is/was a mistake is imo yet still to be determined, objectively speaking.