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Another observation. In Monday's press release, they stated:
"The Company shall issue a further press release once the Proposed Debenture Amendments have been approved and finalized."
This was a two-part transaction; a private placement and a debenture amendment. They stated that the PP would close on or about the 8th, and they stated they will issue a further press release once the debenture amendments have been finalized.
We may very well simply have to wait for that before they issue a release that would be just for the PP.
Again, this was a very complex transaction with many parties all agreeing to it prior to Monday's release. We may just have to wait until they finalize it all.
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Yes, thank you for the correction. This was an extremely complex transaction, with Debenture Holders, Private Institutions, and Insiders all agreeing to a Complete Restructuring of Capital, and Eliminating All Outstanding Debt. They announced it on Monday and said it could close as early as Wed.
There is No Way this complex arrangement could have been agreed to by all parties in less than two days.
This was agreed to by all parties at least last week if not earlier. Whatever is taking the extra time is likely formalizing paperwork and/or an increase in the amount.
Yes, it's frustrating to wait, but if that's what it takes then that's what it takes.
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On or around Wednesday , May 8th not May 7th.
Difference between the last, pathetic raise attempt and this one:
The last raise was announced by Raouf Halim as a "modest" PP expected to close "sometime" in March, with no terms disclosed. They have never presented previous raises in that way.
This recent announcement, made by Ron Pasek, stated very clearly the terms of the raise, including a very complex full restructuring of the company's capital, and it was said that it will close "on or about" May 7. That term, "on or about" is very common from thousands of companies doing PP's, and the "about" part happens frequently where the closing is a couple of days later than initially anticipated.
In the past, when Spectra7's earlier raises closed late, it was always due to an increase in the amount, which in turn was due to it being oversubscribed.
There is no way to close the very complex raise they announced on Monday in just two days. This raise has been in the works for at least a couple of weeks, with all parties already having agreed to the complex terms.
The Wed. May 7 closing date, just two days after the announcement, was a formality announcement. Everyone on this particular raise already committed to their part of it.
That fact that it did not close on the 7th (it is NOT late, by the way, as they stated "on or about,") suggests there may again be a increase taking place.
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I had an order in this afternoon for .125 just a couple of thousand shares to see if those asking .13 would move and they didn't.
As I said before, once bitten, twice shy....I think most want to see it closed before committing, they would be happier to pay .13, .14, .15.... and be sure then get another surprise.
And don't forget ,it filling at 10 cents means regular retail at today's close will only have to kick in 2.5 cents extra then the big boys yet nobody is buying I wonder why.
Thoughts
The market was holding 60 cents for 5 weeks solid before the horrendous announcement that the PP would not be filled
Somehow with an 80% discount to that 60 cents I would think they will fill this PP no problem
Guess we'll all just have to wait and see though
just like the last one, I bet SEV couldn't get into this one either.
I'll bet this is oversubscribed, hope to get the closing news release today
I think that they are waiting for it to close. once bitten twice shy.....
Say what you will about potential revenue, until it happens its just a guess.
If it was a dead cert once the 10 million lifeline hit it should have started to rebound.
Big question mark hovers still
You are asking the oracle as he will write up a story about the why he can’t share it here but it’s a great story. Drum roll please
You are asking the oracle as he will write up a story about the why he can’t share it here but it’s a great story. Drum roll please
I liked the storyline, but today the volume was non-existent, in Canada 23k and in US not even 1k shares today, so explain why nobody is buying the Bid /Ask in the US all day was like .09x.10 and nobody seemed to care enough to grab some of these shares, strange, maybe people are waiting for the PP to close
Future and I know that Nvidia probably will be the new majority owners here.
A Thought:
Those who post on stock forums saying that the PPS will move UP are actually (usually) NOT your friends. They want to SELL, so they want the shares to stay strong by getting YOU to buy while they sell.
Those who say the stock will DROP are the ones who want to BUY MORE, therefore providing support for longs.
Quite ironic, actually
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=65150092
WORDS OF WISDOM FROM FUTURE WRITTEN ON SAvHAT. SO WHY IS HE PUSHING THIS STOCK SO HARD
Well thought out post,thanks for taking the time
Well thought out post,thanks for taking the time
OK, let's try this another way.
Example: Company A is a private company seeking venture capital to get to a position where it starts selling product. The Founders/Owners own 100% of the private shares (yes, private companies can an do have "shares" allotted within their structure). At this time, they have 100 million private shares approved and ready to sell. Now, the owners meet with private investors/venture capital partners. The company sells 10 million shares in Round 1 of their private funding.
A bit later, Company A needs more cash. They sell 20 million more of the 100 million shares in Round 2.
By round three, they have sold 40 million more shares, so now the Founders own just 30% and the private investors own, collectively, 70%.
Now they are ready to go public, but the private investors are not allowed to sell their shares for at least 6 months after the IPO. Company A now offers 20% of the 100 million shares to the public in that IPO.
Here is the very important part: In Round 1, the private investors got their shares for 0.50 each. In Round 2, 0.75 each, and in Round 3, $1 each. The IPO is for $10 a share. The early investors make a killing, once they are finally allowed to sell. Some will sell, but many will hold on for the long term.
The public buys at $10 a share. So, now, the Founders own just 10% of Company A, the public owns 20%, and the rest is owned by a bunch of private investors.
So these bid, bad, evil private investors who own 70% of the Company can do big, bad, evil things to the retail shareholders, right? Because that's what they always do, right?
Wrong.
This is how it works with every private company that eventually goes public, including those big, giant ones like Google, Amazon, etc. The vast majority of these public companies is owned by institutional investors, whom, collectively, have "control."
Does that mean Google, Amazon, etc. retail investors got screwed, because nearly 70% of those companies are owned by big institutional investors?
No, this is how it works.
So try this: Think of Spectra7 Microsystems as a Private company that is about to IPO (Because, in fact, they went public way too soon). So, now, look at it for what it actually is... This little startup that needed all this cash sold the majority of its shares to private investors, and now it's finally ready to go public... BUT WITH ONE BIG, HUGE DIFFERENCE: YOU, the retail investor has the very rare chance to now purchase shares, right now, at the same price paid by these big, bad private investors (Minus warrants, of course, but you get the point). These shares, at 0.10, are what Venture Capital partners would normally pay. BUT YOU CAN GET THEM AT THE SAME PRICE FOR A LIMITED TIME.
Those big, bad private investors bought today because they expect a huge payout down the road (one normally reserved for post-IPO sales) BUT YOU GET TO BUY AT THAT PRICE TOO.
When this finally "IPO's" (starts selling 800G chips en masse) those big, bad private investors will make decisions; some will sell at ten-times profit, some will hold on. BUT YOU CAN DO THE SAME THING.
Yes, yes, I know, Spectra7 is down 99% and people "lost" money. But that's the past. First of all, you didn't lose money if you didn't sell, and if you buy more now, you cab actually still make a fine profit.
Do you see what just happened. In a very rare event in the history of retail stock investing, the regular guy, you and me, have the opportunity to buy shares in a tiny little "private" company for the same price as Venture Capital partners, and that "private" company is about to "go public" when 800G arrives around the corner.
I know some of you will STILL say "We got screwed," but then so did Ron Pasek, the Chairman of the Board, who bought in the several dollar range to the tune of Millions of hos own dollars. The difference is, HE JUST COMPENSATED FOR IT BY BUYING A TON MORE TODAY AT ROCK-BOTTOM PRICES.
The question is, WILL YOU?
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Whoever bought this pp bought the company in essence for 10 million.
They are majority holders thus what they say goes
This is not a modest PP. It is a massive dilution with a financial restructuring.
Call it for what it is.
Easily
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why would you seek input from a poster who was consistently wrong?
What will first orders look like 1 mill 2 mill or more.
That to me will be the test of how adoption should go moving forward.
Big order means big things ahead small order and we are not the leading supplier
Gary, give up. What an opinion of a drum beater would give you?
We already know we have entered a stage of extreme uncertainty.
The company business contingency is under a big question.
So by Sept 2025 you feel 25 million is attainable,correct
I have been in the acceptance stage for a while now...
I did Not say the next 7 months. You lie. I said once 800G orders start, then the next 12 months will produce that figure. Possibly more
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It's your opinion that the next 7 months will produce 25 million.
OK
Bare in mind you felt we would be at $2.00 / share by last Dec.
Hope your right second time around.
Well lets see if it closes today and who bought in.
They did Not put out any such statement. Those numbers you are using came from the Corporate Presentation wherein it states they expect a greater-than 60% compound annual growth rate, and that figure was based on the previous industry-wide anticipation that 800G was going to begin two years ago
They expected a 25 million dollar year with that 800G rollout.
Obviously it didn't happen two years ago, but now 800G is finally here.
So if you want to use the 60 % CAGR, then start at 25 million and go from there.
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Straight out of his backside like every other post.
Where are you getting 20 mill a Quarter Company recently put out numbers stating 16 mill 2024 25 mill 2025 and 40 mill 2026
Ah yes, you are absolutely right, the market cap is definitely going to be a factor with the newly (highly) inflated O/S shares
here I previously posted this
KCC, ok so 66mil fully diluted shares today
plus 13mil shares to convert the debt
plus 204mil shares from this PP (102M shares + 102M warrants)
brings the total O/S to 283mil shares
so at 10 cents per share equates to about 28 mil market cap
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174365371
and yes, there could even be a 2nd tranche, this would be indicative of a stronger anticipates ramp for higher expected volumes and be encoraging in my mind
so yeah, depending on how quickly 800gbs ramps and how widely S7 ACC's are in that adoption will set the stage for PPS, hopefully S7 can at least be doing 20+ million in sales in 2025 and 40+ million sales in 2026, somehow I still believe that there will be either a large player JV or an outright buyout by 2026
Proto, while I agree with you that 0.10 is a temporarily low price, we also have to keep in mind that 0.60 or even 0.35 with 80 million fully-diluted shares is a market cap of between 28 million and 48 million while those same per-share figures with 300 million fully-diluted shares is between 105 million and 180 million market cap.
The new share structure changed that, and the share count might be even higher if they do another tranche.
now, having said that, with the new structure and no debt to speak of, and with their actually now being ready for the 800G roll-outs, I absolutely believe we will see those higher market caps, but they will be based on the sales going out, not on the former per share prices of a few weeks ago.
Even with 400 Million shares out, they will be fine. Once 800G garners them 20 million a quarter or more in sales, a 180 market cap will be easily doable. I just read another two trade articles about the second half of 2024 being when 800G actually rolls out, so its near... But, again, the new rise in share price will be based on those upcoming sales rather than simply returning to earlier prices just because it was there once before.
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yp said 0.05, ok so why will it be 50% below the already crazy 85% off fire sale PP price of .10
riddle me this, how could the market value of held .60 for 5 weeks for "modest" PP to be completed, and then only be priced at more than 80% off that .60 ongoing 5 week valuation given by the market
as some here have said, something stinks about the whole deal, it's a "virtual" takeover by a new "investor class" while the long-term supporters are now just peanut gallery holders of S7
wouldn't it make more sense for it to meet in the middle between the .10 PP price and those last 5 weeks of ,60 trading after the PP was announced, that would be about .35
also, in my mind, this new "investor class" I'll bet would be happy to scoop the peanuts gallery old investor class holdings up at prices between .10 and .40 as much as possible, keeping in mind that .40 is still a 33% discount to the .60 originally being sought after for the "modest" PP
I would think the share price will rise, here's why
1) the more I think about it, the more it seems like this PP being done at about 0.10 seems like a game of dirty pool, why? because the share price from 3/5/24 to 4/12/24 held at bout .60cad, now if in that time they were having trouble getting it fully subscribed I would bet the ranch they could have made continuing concessions of 5%. then 10% then 20% then 30%, ok well you get the idea, and eventually it would have priced/filled, but apparently no effort was made in this regard
2) then a "rescue" the shareholders PP is placed at .10 and the bulk of the ownership is taken away form the long-term investors
3) the new investors will likely be the big winners not just because they own the vast majority of the company for about 80+% under the last market price before the collapse based on the news release saying S7 will be "running out of cash" in 2 weeks!! and that was declared after 5 weeks of doing nothing to get the PP done much less horrible drop in PPS
so yes, I believe the technology opportunity is still there, and the funds should now be in place to implement at 800gbs, so I believe the PPS will trade up from the newly created low and slowly head back to .60cad where it fell from abruptly, jmo
Any guesses as to shareprice once new float is active
I was the first poster here years ago and Steve S. and I shared an interest for a while, but once the CEO died and revenues from Oculus failed to impress I got out.
Too bad what happened here, but the financials always were so weak -
I thought you said you were going back away for a while? We enjoyed the silence.
Perhaps that investor that pulled out had a similar mindset to me and believed that after the announcement of the PP that the PPS would have taken a 10 to 20% hit where they would have been comfortable purchasing the PP, considering there was over a month for the PPS to decline but it never did that purchaser presumably finally told S7 that they were no longer interested in participation at the current pricing, all of that is simply a theory but we will never know because it's in the history books now and it is what it is, so once again I say x marks the spot you are here do you now still believe in this technology and if you do then presumably it is a screaming buy at $0.10 and an easy 10 plus bagger from here
Yes I get your point. I just pull my hair out when some just dismiss dilution especially when management f'd up.
Again, who was this so called investor that pulled out? Apparently this investor approached the company and then bailed.
yes, I/we FULLY UNDERSTAND your point about dilution, but do you UNDERSTAND my point?
S7 now has the resources in place for implementations at 800gbs presumably with $$ for production ramp, not just the "modest" PP which would NOT have had $$ to ramp 800gbs production
X marks the spot, YOU are here!!!
Do you believe in the technology and believe it is a 10+ bagger from HERE? If so, it is time to load your boat, if not, then don't
I am pointing out dilution and why it's bad.
10 bagger in 1 to 2 years? A 10 bagger from here .10? Remember there was a poster saying he had sell orders in at $10 to start
Future, is that what you are holding on for, a 10 bagger from 10 cents? Breaking even?
Do you propose to chat about our fiasco? How logical would it be? Nobody likes talking about their unfortunate decisions. Write it off and move on, or you end up in a psychiatric ward…
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