wondering if the company has been exercising its warrant options with the investors who have warrants to raise some more cash?? The recent slide and pressure on the stock could be explained that way.
From Oct 21...It was actually sirius who discussed this:
"ariel...they have outstanding warrants for this purpose already...by having the warrants exercised they will tab the cash they need without doing to another offering. This will increase outstanding shares but no need for a formal offering. If they are predicting they will be cash flow positive in 4Q then they dont need much more cash to begin with. remember that their revenue is growing rapidly too so by next FY they will start creating FCF to sustain their organic growth. All bets are off if they decide to do another acquisition like HC.....which I dont mind more dilution for that personally."
No offense but the exercise of existing issued warrants is actually non-dilutive. Those shares are already accounted for in the cap table. There's no better method of financing than the exercise of existing outstanding warrants because it avoids the actual issuance of new shares. What you said is not only wrong but something most any neophyte investor would know.
I'm not the one who brought up the dilution issue. I believe it was xtj (I'm not positive)last week or so about how the company can access up to $40 million by exercising warrants. And how this was of not a big concern to him.
I would much rather they grow sales and generate working capital internally. Exercising warrants, even if it for a temporary hold over is not good, if you ask me....and I know, you're not....as much because it is very unlikely that the company would buy those shares back any time soon. More shares just diltes everyone's current holdings. Makes the hill back to new 52 week highs that much steeper.
I don't want any dilution. Anyone buying shares right now should be concerned about their working capital needs over the next 1-2 qtrs and whether dilution is on deck. It looks like it might be.
Do the math yourself. Sort of common sense.
Yes Warnabee, I am the only restaurant/Bar owner in the world that gets paid by Paul Arena personally to pump the stock and YOU SIR HAVE ONCE AGAIN PROVEN THAT YOU ARE A COMPLETE AND TOTAL IDIOT THAT NEEDS TO STAY ON HIS MEDS ......just sayin.
You have a lot of nerve telling anyone else they're confirming your suspicions. You just posted the company keeps diluting when they have not sold a single share since the $9 million raised at $3.25. Why would you just make up and lie here if it wasn't to try and scare and manipulate? Just come clean with all of us.
My objection was not to call you names but to point out IF you are invested in this company for all the reasons stated here ad nauseum then you should have patience because none of those core reason has changed but gotten stronger...and IF you understand OB stocks then you should also realize that in many cases the reality and the underlying strengths of the company is disconnected with the stock price....I guess you can say the latter about any company trading below valuations during market turmoil.