(Total Views: 264)
Posted On: 11/09/2018 3:31:41 PM
Post# of 72446
We can get the money pretty much any time. The question is how much dilution will it cause? $1M-$2M requires 7.5M-15M shares at current prices. That's not counting any shorting, per Sox's theory, that the MFO might do. If they do short and the P results are unfavorable, that number of shares could be significantly higher. That is a considerable gamble for shareholders.
He may have no choice but to do it in the future but right now if the B deal is close, it is better to wait and use cash rather than gamble diluting another 5-30% of the company on a gamble. Unlike the Aspire deal where our dilution is fixed at the time of sale, the MFO deal can result in us losing very large chunks of the company through dilution if things go the wrong way.
There's also no guarantee the stock will go up (the 1000%+ we need it to) on decent results. Let's hope for a deal and soon.
He may have no choice but to do it in the future but right now if the B deal is close, it is better to wait and use cash rather than gamble diluting another 5-30% of the company on a gamble. Unlike the Aspire deal where our dilution is fixed at the time of sale, the MFO deal can result in us losing very large chunks of the company through dilution if things go the wrong way.
There's also no guarantee the stock will go up (the 1000%+ we need it to) on decent results. Let's hope for a deal and soon.
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