I wouldnt be suprised if Augme is raising some cash through warrents. It is getting close to the time they will be able to uplist, and they may need to raise cash to erase a "going concern" (thats if they have one). ETAK raised a bunch of cash right before they got uplisted for this exact reason. This is total speculation and although no one likes dilution the uplisting is a positive event for the company.
Augme hasn't had a going concern clause for quite some time. Warrants being exercised is completely non dillutive and has no affect on anything. It's smart of the company to try and get outstanding warrants exercised.
Possible they know more than Wannabee? Even Wannabee wouldn't invest here if he really thought he knew more than management. Everybody invests to make money and that is why Wannabee sold his Apple and kept his Augme. He knew which one had the better chance at the highest return. His smartest move ever!
Yes they will all be rushing to hedge their positions since not one single insider has sold shares of their stock in years right? Why do you think none of them took a single chip off the table when the shares ran from 80 cents to $4.70 trading a million shares a day? Is it possible they might know just a little more than you?
Very little Imiami. It can't be bought or sold on margin. You can't hedge with puts. There's some shorting, but nothing like you'll see if it gets uplisted. A $2 stock with 50 million shares available to tweak? Even the insiders will start hedging. They would be stupid if they didn't.
Classic, you just wrote "I'm not certain I'm correct but"
Then why say anything if your not certain! Seems like a responsible individual would just say nothing if he didn't know what he or she was talking about.
I can't confirm who the buyer was but if I were to wager, I would guess it to be Mr. Jaffrey's. I do believe it fact that Mr. Saverin, FB founder, is both partners with Jaffrey's as well as being a friend. I believe Jaffrey's and Ivan Braiker too are long time friends.
It's contacts like these that have prompted me to comment that you really never know what's going on behind the scenes or what relationships may be being leveraged on behalf of the company and its shareholders.
With respect to some doubting FB knows Augme, consider the following: Jaffrey being close to Saverin, and George Munoz having been former Assistant Treasury Secretary while FB COO Sheryl Sandberg served as chief of staff for the United States Department of the Treasury. Small world out there.
I think relying on the company's own statements in the filings with the SEC is clearly very important. All investors should follow suit.
That said I would simply add, and I know you will concur, that there are many additional avenues that have the potential of bringing in capital to the company in order to bridge any possible gap that may exist for the next two quarters. As has been discussed, a strategic investment, a settlement, or the continued exercise of outstanding warrants, could all mitigate or even alleviate such a need.
Personally, assuming the company is not sold before then, I think a strategic round of funding from some big name company's would really go a long way in terms of building the credibility the company so desperately needs and deserves. Generally speaking when you see a company like Microsoft, SAP, Oracle, Acacia Research or any other large company make a strategic investment in a smaller company at the current market price, investors tend to view it as highly favorable and indicative of higher valuations to come.
Regardless of what happens, you and I both know Augme has extremely capable executives, all with large personal equity ownership, who would seem to have no intention of doing anything that could undermine the value they're working so tirelessly to create.
Thanks for your thoughts.
Per the 10K and these comments were echoed on the last conference call. I will stick with the documented facts. There were dozens of comments related to the cash position saying that the cash balance was fine, from the time they filed the shelf on 7/13/2011 right up until 11/17/2011. Anyone that bought AUGT stock in this time period is underwater.
On June 29, 2011 we filed a Form S-3 registration statement with the Securities and Exchange Commission for the purpose of raising up to $75.0 million through sales of our securities. The registration statement was declared effective on July 13, 2011. The registration statement allows us to raise capital by engaging in securities offerings from time-to-time, as funds are needed. On November 17, 2011, we completed a public offering pursuant to which we sold 9.4 million shares of the common stock registered on the Form S-3 registration statement at a price to the public of $2.15 per share. We raised $18.5 million in proceeds, net of $1.7 million in costs related to the offering, leaving approximately $55.0 million of the $75.0 million registered on Form S-3.
We expect, during fiscal 2013 that we will need to undertake additional offerings of our securities in order to meet liquidity needs and, if equity markets are favorable, we will raise additional funds to invest more rapidly in our growth strategies. If sources of capital are unavailable, or are available only on a limited basis or under unacceptable terms, then the Company could be required to substantially reduce or discontinue its investments in intellectual property, new customers and new products; reduce operating, marketing, general and administrative costs related to its continuing operations; or limit the scope of its continuing operations. Due to the nature of the operations and financial commitments of the Company, including contingent acquisition obligations, patent litigation costs to protect intellectual property and employee costs, the Company may not have the discretion to reduce operations in an orderly manner to a more sustainable level without impacting future operations or the intellectual property held by the Company.