But regardless of what all the gum flappers have to say, here is Microvision's reality:
The company has virtually no cash left and must dilute existing shares by a significant amount within the next four or five weeks or they will run out of cash and be forced to close their doors. So, there is a very large dilution around the corner.
It seems that there is nothing that will happen in the next four or five weeks that will have any significant bearing on the share price from n upwards perspective. So any dilution at the current level will see a minimum of 15% - 20% wiped off the share price from where we are now. The trick will be to not let it fall under the $1 minimum listing requirements.
If it does fall under that $1 level and it stays there for any significant period of time Microvision will be delisted from the Nasdaq and will be forced to trade on the pink sheets.
While it will be possible to continue to raise money to keep operations going, that money will be monstrously expensive in terms of percentages of the company they will need to give away in order to raise it. On top of any dilution to future investors there will also be a huge dilutive effect of the requirement that management's share remains constant so they will be issued enormous stock grants to make them whole. That will leave ordinary shareholders with virtually worthless shares.
The down side right now is about $1.30. The upside is virtually non-existent. I understand that they are working with "partners" but it's a timing issue now, not a business issue.
Forced to close their doors (Really?)
It "seems" (So you do not know.)
"If" it fails. (So you do not know.)
"While it will be expensive to continue..." (Is this before or after they will be forced to close their doors?)
"The down side right now is 1.30." (Really?)
"The upside is virtually non- existent" (Really?)
"It is a timing issue now, not a business issue." (Very heavy.)