Will be very interesting indeed. PURE exercised warrants in the past, but I don't see them as a top equity security holder in the 4E report
Maybe they're trading under a different name? Or maybe they're the ones responsible for the continued downward pressure on the shareprice?
The question I have is what would SC do with the funds if Pure exercised the warrant? Pay off more of the debt, increase headcount, purchase inventory, direct it to Adventurer 3?
Me personally I'd like to see the warrant expire. We have sufficient cash to start paying off the loan and turn this company around. SC wouldn't be hiring additional staff if he wasn't confident in the business and ongoing cash flow. Repaying that first $1m in March will start saving $95k / year in interest expense! Not sure what interest the company is receiving with the cash / cash equivalents sitting around, but it's always best to direct additional funds to debt unless you're confident you can make an after tax return greater than the interested charged (9.5% in our case).
SPA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)