A private placement is not a feasible option for Cyclopss at this time as Jeffrey stated. The price per share is too low to garner any interest. In addition, from my understanding, the last private placement was not fully subscribed to. The only hope for Cyclopss now is for it to secure immediate contracts for its marketable products (read laundry system and Eco-Pure Food Safety Systems).
The one private placement that I participated in was the placement that took place late last year (Oct - Nov timeframe). I, along with everyone else who participated, cannot trade these shares until this coming Oct./Nov. as mandated. However, note that most of the participants who also partook in this placement and the one of a few months ago, are not your short term investors (read big money). I don't expect to see a huge increase in selling volume that one could attribute to the players in either of these placements.
Cyclopps did have several awesome, and I repeat awesome, financing options on their plate immediately prior to the stock's recent price drop. Regardless, since the price of the stock took a major nosedive, almost all of the company's financing options were withdrawn. The price we are seeing today accurately reflects the risks of delisting. Even if the company's stock is delisted from Nasdaq, it does not necessarily mean the end of Cyclopss.
From my understanding, there are several things in the works for the company (read potential contracts in excess of 2.0 million) that could provide sufficient cash flow for the company to continue to survive well into the future. These contracts may not be realized in time to keep the company from being delisted. However the company will be able to survive and one day reapply for a Nasdaq listing.
As always with Cyclopps, 'sales are just around the corner'. They are very close to closing a major laundry contract and a HUGE contract with the Eco-Pure Food system. If Cyclopps is able to close these contracts, we are home free in the long-term regardless of delisting.
If Cyclopps does get delisted, don't begin to place blame on the company's executives or board members. The blame should be squarely laid upon its marketmaker. They would be the one who dropped the ball and thus the ones to blame...
Cheers, Alan |
