Our resident expert on all things inconsistent, has highlighted...

Our resident expert on all things inconsistent, has highlighted his opinion that our CR strategy of raising only enough capital for the the next milestone is inferior to a larger scale CR that grants enough cash for 12-24 months.   

But that argument is akin to a large meal is better than quality meal, for no other reason than size and the time it buys.

Ironically we now have two perfect example platted for us to examine to debunk that idea, both brought to our attention by a kind resident expert.

1 - First our resident expert took the time to extol the virtues of our first example - the NOX 26 Million two year funding arrangements of convertible notes and options.   He  made clear reference to that position being far superior  than KZA's  route of seeking investors via a traditional CR. He made the point over and over again that the dilution would be 100% for KZA holder as that was  the amount the Edison report indicated would be needed to see registration trial through ie 15-20M. He also several times noted how NOX shareholder were now free of the funding monkey on their back and that would allow the share price to rise

However as noted by many that NOX deal, our first example of funding was made purely because they could not find large investors to join the ranks as everyday traditional shareholders and burden that risk.   The convertible notes turned out to be a nightmare for Nox shareholders and with each infringement on the conditions the two investors were rewarded and the shareholder punished, to the point of the share price dropping form 50 cents to 23 cents. NOX has now abandoned that deal and is pursuing funding elsewhere now.   Thus a large meal or funding arrangement can be little more than a pile of dog sh^% slapped on the plate and shareholders told bon appetit

2- Example two is of course KZA last CR of 4M to see us through to the mid 2020 and next inflection point. This is the second small inflection CR KZA has now completed .    The meal is of course much smaller, the funds are shorter in the time frame, but clear signaling from management of their purposefulness has lead the share price to, in direct compression to NOX,  head north instead of south.   Why? It is the purposefulness of de risking shareholder burned to smaller steps of commitment and rest solely on the credibility of management to produce value data demonstrating shareholder trust for holding and for the new larger sophisticated holders who stumped up the cash for the CR they are rewarded handsomely for such quality data.   Dilution is mitigated and with each rise in the SP to the  last quality meal (CR) the incentive for the next CR is already there.


Thus our resident expert has highlighted two funding arrangements for us with two companies.   One was large but so unpalatable for shareholders the chefs have taken it of the menu due to customers numbers declining by half. The other was much smaller but so tasty another 6M trades came after that and boosted the share price now to the low 60s and all shareholders have been rewarded for such.    Smaller meals of quality data will win the race.   No stupid unsubstantiated claims, just letting the data speak for itself and all back by granted and secured IP. Our methods of raising funds is far superior and that it is a fact that no amount of scaremongering can deny.