Here's my 2 cents
Agree with
@Glyco and @harlen. Less dilution the better. And yes plenty of red flags along the way. Everyone knew these and were discussed along the way, but investors placed there bets accordingly.
I don't think the market was expecting the Nasdaq ipo to go ahead in the short term. With a sp half that of the underwriten price. That tells you everything.
Problem is it's another knock to management credibility and it's ability to execute.
So where to from here? The TH should address the companies funding position going forward. At what point does Yacov take this private and re ipo in a few years time? Does yacov have a white knight that's going to buy in at a premium? Does he tap the controlled equity facility? Does he just keep funding the company month to month until its cash flow positive? Does he buy back all the convertible notes and clean up the balance sheet? One would think he has the funds to do all these.
I have always said "why now" when the company has made a particular announcement. When the company decided to list on the Nasdaq in June, both yacov and Brendan buy more stock as I'm assuming it's was finally about to all fall into place. HC Wainwright underwrites and organised a roadshow. But then anything and everything went wrong. So why announce canceling the Nasdaq ipo now?
As I've said before. GMV has 2 products with approvals in CE, FDA and TGA. An approved factory. A management team that's "been there, done that" with 100% regulatory approval track record. All that's been lacking is execution.
Is a Nasdaq IPO really going change much in the short term? It's defiantly not going to effect sales efforts in the UK or the regulatory process in China.
Keep in mind the initial Nasdaq ipo announcement did not much for the share price. I personally hoped it resulted in a valuation re rate based on BEAT and IRTC. But never believed it's would effect the underlying business.
A TH until Monday suggest they have something else in the works. No need for that much time.
