Not for long. According to their filing one of two things will happen:
1) Shareholders approve a full conversion of ALL of the $6M worth of preferred stock to the "investors" which dilute the float about 100% (they are for .68 cents each).
2) Shareholders do NOT approve the conversion and Majesco doesn't get their money, they get delisted from Nasdaq and may be forced to dissolve the company.
From the filing:
"We are required under the NASDAQ rules to obtain shareholder approval for any issuance of additional equity securities that would comprise more than 20% of the total shares of our common stock outstanding before the issuance of such securities sold at a discount to the greater of book or market value in an offering that is not deemed to be a “public offering” by NASDAQ. On December 17, 2014 we closed a private placement in connection with which we issued $6.0 million of units consisting of one share of series A convertible preferred stock and one warrant, $5.0 million of which is being held in escrow pending shareholder approval. See “Management’s Discussion and Analysis – Liquidity and Capital Resources – Private Placement” for more information on the private placement. In addition, funding of our operations in the future or acquisitions may require issuance of additional equity securities that would comprise more than 20% of the total shares of our common stock outstanding, but we might not be successful in obtaining the required shareholder approval for such an issuance. If we are unable to receive shareholder approval for the full conversion of the securities issued in the private placement or obtain future financing due to shareholder approval difficulties, such failure may have a material adverse effect on our ability to continue operations or maintain our listing with NASDAQ, which could have a negative impact on the trading market for our stock and our ability to raise capital in the future."
tan, why folks are buying this garbage stocks $1.26 and $1.25 price range after bad ER.what is your answer WHAT IS YOUR TECHNICAL PHILOSOPHY.
last year total earnings reports are plummeted. but we do not follow technical philosophy regarding this cool stocks. because stocks price moving average is attractive after another bad Q4 ER. one good option is COOL still listed on the NASDAQ .
It explains exactly what is happening here.
"Over the last few months, I have been focusing a good portion of my screening activities searching for net operating loss (NOL) shells and it's something I would like to discuss today. I first became interested in the topic after reading a very interesting write up of a NOL shell. The main purpose of this post will be to talk about what NOL shells are, what to look for, and the benefits and risks of investing in these types of companies.
What are NOL shells?: So, first things first, what are NOL shells? A NOL shell is essentially a company that previously incurred substantial losses over an extended period of time and currently has no business activity. In the U.S., if a company generates a net loss in a period, it is allowed to "carryback" the loss two years (assuming it was profitable in the prior two years) and get a tax break or it can carry the losses forward for 20 years to offset future taxable income-hence the term 'net operating loss carryforwards'."
bad report, yes, but we already knew that weeks ago. There was buying before the report was released. I believe that they already got something going with another company. Hinted at that in the report. I was going to sell but decided to wait and see what develops.
No it isn#$%$ obviously being propped up by the preferred shareholders. They want to use the shell for some purpose. They will not make their money off of the common shares, that much is clear.
I ain't losing nothing. Maybe you haven't noticed the stock price trend since December 18.
Let us know where your account stands at day's end, lol!
Sentiment: Strong Buy
What empty talk? THEY are talking. They are telling you that your investment is garbage. It is not my fault if you are losing money.
More empty talk. Do something about it genius. Show us you have huevos. Hit the bid. You can't lose, right?
From the annual filing (please note: " Any additional funding derived from the sale of equity securities is likely to result in significant dilution to our existing stockholders"):
" Our financial resources are limited and we will need to raise additional capital in the future to continue our business.
We do not expect to generate the level of revenues going forward as we have achieved in prior years from our video game business. This significantly reduced revenue will impact our needs for future capital. We cannot ensure that additional funding will be available or, if it is available, that it can be obtained on terms and conditions we will deem acceptable. Any additional funding derived from the sale of equity securities is likely to result in significant dilution to our existing stockholders. These matters involve risks and uncertainties that may prevent us from raising additional capital or may cause the terms upon which we raise additional capital, if additional capital is available, to be less favorable to us than would otherwise be the case. If we reach a point where we are unable to raise needed additional funds to continue as a going concern, we will be forced to cease our business activities and dissolve the Company. In such an event, we will need to satisfy various severances, contract termination and other dissolution-related obligations. "
Also note: "If we reach a point where we are unable to raise needed additional funds to continue as a going concern, we will be forced to cease our business activities and dissolve the Company."
They are telling you what is about to happen. Significant dilution to raise funds and if they can't get enough, the company is done. The common shareholder will lose in either case.
like i do...zzzzzzzzzzzzzzzzz
The only ones not sleeping here are the couple of pumptards holding a few shares pretending they are players..lol
Sentiment: Strong Sell