Thanks, Jim, it seems that things revolve around their ability to obtain that $5 MM in Junior capital. With the most quarterly earnings around $2 MM, I am surprised the were not able to get that funding. If they don't get, the lender 9and that is quite a chunk of debt there), imposed draconian interest rates. On the other hand, could the recent breakout indicate that possibly, they have this funding "locked in", and thus the dilution might not be that severe (if they get the funding by the end of this month, only 562,500 warrants need to be issued, and since $12 is well above book (and very much above net tangible book), I would not call that much dilution (even in absolute number that is 10% dilution, and actually will increase the book value per share).
What is extremely attractive here is the recent growth rate , particularly in the bottom line, even id they maintain this and do not continue to grow that is still some $9 MM on an annualized basis for just a little more than 7 MM shares. That is unusual to find.
I think that it is still worth watching over the next few weeks here. Thanks for the input again.
Zeev |
