Rahim, this is obviously good news. It confirms everything that I have been saying about what is going on.
They have signed a great deal for the equipment! NO RISK! Unfortunately, they lost some time negotiating the deal. This was hinted at in the release. They went down to the show to sign one deal, and were swept off their feet by the other company. AS a result, they lost a couple of weeks and it doesn't look like they can install the equipment in June. No surprise, since it is already June 22.
I think we need to give them 4 weeks to install the equipment and start production. That means a lot of news releases to come out in the next 4 weeks. The steady news should start to have an impact on the share price.
I'm not sure that everybody has grasped the full impact of the news. The largest single expense is now fully financed at no risk to the shareholders. That means - less dilution. Forgive me for tooting MKDs horn and sounding like I'm hyping it, but that is great news for all us shareholders. To the tune of a few million shares. At 15 cents, to raise 1/2 million it takes 3.3 million shares (and warrants). Now that was dilution.
Mr. Misfud, what did you dread most. The consolidation or the share dilution. I myself couldn't care about the consolidation, it was the inspid dilution that worried me. After warrants, 3.3 million post consolidated. Gulp. Now, with this great news, we might both be happy. If they don't have to finance...
I would love to be able to do a projection, but we need more info on the capital structure. I suspect the previous one still applies, but it could be close to applying on a pre-consolidated basis, not post. The capital structure is what will be released in the coming weeks. I'll post it when I can.
I suspect this is the start. If anybody was waiting for the consolidation and malaise to make their move, I suggest they reconsider. If my suspicisions are correct, this is ready to move.
Ted |
