Obviously Cantor Fitzgerald went straight to work :-) Very nice gain so far. Staying short here.
They already pre-announced revenues of $3.5 mln and a mind-boggling cash burn of $25 mln in connection with the offering in a SEC-filing last night.
The new financing will just take them through three more quarters at this pace
Frankly I don't get why the shares are up on this news. Dilution will be above 30% including fees after all is said and done. Lincoln Park is the only winner here.
Well - you shouldn't ignore the looming secondary offering which obviously is weighing on the shares here.
Obviously it is a giant gain given that I shorted around $2 this morning (see post below). Just another great call here
qoq member gain of only 600k (just 6%) looks pretty alarming especially as the company has NOT cut back on marketing spending. YoY revenue increase also at the lowest rate for the last five quarters.
Stock should trade substantially in the red as the future doesn't look pretty for the company. Without further investment member growth might stop entirely only a few quarters from here.
nonsense - these is in fact the worst set of numbers the company has reported for five quarters adding just 600k new users and revenues are up just 30% yoy.
Why should it squeeze ??? Earnings are very poor compared to last quarter or even yoy growth rates...
Sequential user growth:
Will see if that holds up
The press release already gives a hint to a weak next quarter as the upside was only a function of order timing. Shorted big time in pre-market for an expected guide down.
Well, it does mean that they will restructure their debt in bankruptcy proceedings pretty soon. Alvarez & Marsal are chapter 11 specialists.
I would expect virtually all of the shares from the latest offering to be used to cover short positions opened by the buyers of the offering during the reset period so the selling pressure from the offering has already occurred.
I would expect some additional pressure from the converted debt obligations.