Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Writing issues aside . . . I think most people figured out this is a very, very safe and effective drug, in this case. THAT was the point.
WOW! How many times will that 1K at 5.94 have to get bought before it disappears? Every time it hits 5.94, 1K pops up and stays there no matter how many shares are bought! NASDAQ!!!!!
When the drop the fins, there will be immense excitement and Merry Christmases all over the world!
So, when she starts to run, she may just gallop right on past $20 pretty quickly. There is much to like here and when there's much to like, a little patience pays off hugely.
When she starts to run, she may surprise a lot of naysayers! You ought to know by now that the market does not do what you think it ought to do when you think it ought to do it. They're spraying down everything that moves with this liquid gold! Let'em spray your house too!
I don't doubt that it will go up, but there must be close to 1B shares out at this point . . . and this company cannot support a 1B MC, so a dollar is not an option for a long time. A few pennies is doable, but their financing is promissory notes, each of which is being converted or is convertible to hundreds of millions of shares. That has to stop!
The Source of the Dilution: A Sample
Unless they get serious cash flow generated to pay off these PMs, the dilution will continue ad nauseum.
https://www.otcmarkets.com/filing/html?id=14154738&guid=g8IFUWua4rVcQth (pages 20-21)
On March 28, 2019, the Company signed a convertible promissory note with an investor. The $225,000 note was issued at a discount of $20,000 and bears interest at 10% per year. The Company issued 25,000 common shares to the investor. Three draws of $56,250, $112,500, and $56,250 were borrowed under this note. The note principal and interest are convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of the common stock during the 20 trading days immediately preceding the notice of conversion or (b) $3 per share, beginning in September 2019. The note has prepayment penalties ranging from 110% to 125% of the principal and interest outstanding if repaid within 60 to 180 days from issuance. The note matures in three intervals in March 2020, June 2020, and November 2020. The note was partially repaid by conversion to stock.
On April 1, 2019, the Company signed a convertible promissory note with an investor. The $225,000 note was issued at a discount of $25,000 and bears interest at 10% per year. The Company issued 25,000 shares to the investor. An initial draw of $100,000 was borrowed under this note. The note principal and interest are convertible into shares of common stock at the lower of 70% of the lowest traded price of the common stock during the 20 trading days immediately preceding the notice of conversion. The note matures in April 2020. The note has prepayment penalties ranging from 110% to 125% of the principal and interest outstanding if repaid within 60 to 180 days from issuance. The note was paid in full by conversion to stock.
Convertible Notes Payable
On April 29, 2019, the Company signed a convertible promissory note with an investor. The $1,325,000 note was issued at a discount of $92,750 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) $2.75 per share. The note matures in April 2020. The note has prepayment penalties of 120% of the sum of the outstanding principal, plus accrued interest, plus defaulted interest, plus any additional principal, plus at the holder's option, any amounts owed to the holder pursuant to any other provision of the note. The note was paid in full with proceeds from issuance of debt and preferred stock.
On May 28, 2019, the Company signed a convertible promissory note with an investor. The $322,580 note was issued at a discount of $22,580 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) $2.75 per share beginning in November 2019. The note matures in May 2020. The note has prepayment penalties of 120% of the principal and interest outstanding if repaid before 180 days from issuance. The note was partially repaid by a combination of conversion to stock and cash.
On June 18, 2019, the Company signed a convertible promissory note with an investor. The $366,120 note was issued at a discount of $27,120 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion. The note matures in May 2020. The note has prepayment penalties of 120% of the principal and interest outstanding if repaid before 180 days from issuance. The note was fully repaid by conversion to stock.
On August 6, 2019, the Company signed a convertible promissory note with an investor. The $220,000 note was issued at a discount of $20,000 and bears interest at 12% per year. The note principal and interest are convertible into shares of common stock at 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion. The note matures in August 2020. The note has prepayment penalties of 120% of the principal and interest outstanding if repaid before 180 days from issuance. The note was partially repaid by conversion to stock.
On August 29, 2019, the Company signed a convertible promissory note with an investor. The $234,726 note was issued at a discount of $16,376 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion. The note matures in August 2020. The note has prepayment penalties of 120% of the principal and interest outstanding if repaid before 180 days from issuance.
On November 18, 2019, the Company signed a convertible promissory note with an investor. The $55,000 note was issued at a discount of $5,000 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of common stock during the 15 trading days prior to the issue date or (b) 70% of the lowest traded price for the common stock during the 15 trading days prior to conversion of the note. The note matures in November 2020. The note has prepayment penalties between 115% and 125% of the principal and interest outstanding if repaid before 180 days from issuance.
On November 18, 2019, the Company signed a convertible promissory note with an investor. The $110,000 note was issued at a discount of $10,000 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of common stock during the 15 trading days prior to the issue date or (b) 70% of the lowest traded price for the common stock during the 15 trading days prior to conversion of the note. The note matures in November 2020. The note has prepayment penalties between 115% and 125% of the principal and interest outstanding if repaid before 180 days from issuance.
On December 11, 2019, the Company signed a convertible promissory note with an investor. The $220,430 note was issued at a discount of $15,430 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion beginning in June 2020. The note matures in December 2020. The note has prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance.
On November 25, 2019, the Company signed a convertible promissory note with an investor. The $1,000,000 note was issued at a discount of $70,000 and bears interest at 8% per year. The note principal and interest up to $250,000 every 30-day calendar period are convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) $0.46 per share. The note matures in November 2020. The note has a redemption premium of 115% of the principal and interest outstanding if repaid before maturity.
On January 9, 2020, the Company entered into a $225,000 convertible note. The $225,000 note was issued at a discount of $13,500 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) the lowest traded price of the common stock during the 10 trading days prior to the issuance of this note. The note matures in October 2020. The note has prepayment penalties of 110% to 125% of the principal and interest outstanding if repaid before 180 days from issuance.
On January 27, 2020, the Company entered into a $223,300 convertible note. The $223,300 note was issued at a discount of $20,300 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at 75% of the average of the lowest 3 trading prices during 15 trading days prior to conversion. The note matures in January 2021. The note has prepayment penalties of 110% to 125% of the principal and interest outstanding if repaid before 180 days from issuance.
On March 25, 2020 the Company signed a convertible promissory note with an investor. The $338,625 note was issued at a discount of $23,625 and bears interest at 8% per year. The note principal and interest are convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion. The note matures in March 2021. The note has prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance.
It's probably just the hundreds of millions of conversion shares in the promissory notes.
In March 2020, we had about $1.3M in outstanding PN, all convertible at .46 OR the 75% / 10 rule, which adds up to about 433M shares that will potentially be converted unless the loans are paid back with interest.
Interesting note: email from IR says the current S1 is NOT effective! Well, how does that change your thinking about dilution?
Whatever you think about the proposed dilution, they are in a very hot space right now and they are engaging clients in that space. They are not simply spinning a dilution game; they are legit at what they do and getting more so every month. What P/E are y'all using for projections? Low to mid-20s looks about right. $1M in earnings should put us around .026 @ 23 P/E. Not sure how much is in the current kitty, but we're getting there!
Could . . .
You misunderstand the purpose of Cov-Shield. It is to help prevent person-to-person transmission by blocking particles that may be discharged from another person, not to prevent all possible infection. The only way to do that is to shut down the entire globe and lock everyone inside (we're getting closer and closer). The company no where claimed that it would prevent COVID:
" Meets CDC guidelines
No assembly required – folds up flat
Student finger protection design with pinch guard
Stress protection – provides safeguard/buffer
Allows for more students per class
Easy to clean and disinfect
Easily stored – won’t lose parts
Cable management
Test secure for testing centers – frosted option available
Eases stress of social distancing"
https://galaxynext.us/
It's not just the COVID that will push online education; it is the mounting fear all throughout the country. Think of how many media-loved problems it solves. Many, many schools will go back online only this Fall. Those that do not will be buying things like the Cov-Shield in large quantities - parents and regulators will demand it.
The new "Letter of Intent" purchase for Classroom Technology Solutions involves an additional $3.5+M revenue per year, possibly more since the PR stated that as an average over 11 years (surely there is a growth curve in there somewhere). So, I'm thinking more like $6-7M/year.
That is 100% increase from current price.
They had $3M in purchase orders back in April . . . surely that has done nothing but rise with the school/COVID situation. $3M saves 660+M shares in dilution. GAE was about 1.6M per quarter in 3Q, so revenues may be getting close to covering that at least . . . by now . . . assuming significant growth.
I would too . . . gladly . . . but I don't know if there is enough wood in the shed or plans in the portfolio to get us there.
Maybe. I can't see them offering .10/share though, at this level of dilution - unless there is much more inside the GAXY shed than we know about.
I think NITE's 5.4M ask @ .0047 is BS - if it got tapped on a bit, I'd bet it would disappear . . .
Just curious . . . at what price (GAXY) would you kick yourself for that move?
BOXL just had a $150M shelf registration announced this morning.
There were actually three questions . . . or do you mean the PM one?
Thanks for the update.
I too emailed IR to see what they think about the timeline for cash flow taking over for some of this heavy dilution and their rationale for the 30% potential dilution in the recent S1. Don't expect much by way of answer, but sometimes a small bone is thrown.
I get that they need cash . . . so sell some shares as needed . . . but to randomly dump 200M without a really good reason to dilute 30% is not good management. At some point these contracts they have been touting will get counted in the cash flow (lol!) and they can actually spend that money to pay the bills! Here's hoping!
I've read it several times. But the rate of dilution being touted here by some indicates the o/s should be well north of 1B by now and growing by the minute! LOL. Do we have confirmation that the S1 was actually finalized? When was it declared effective? How does anyone know that the trading over the past few days has anything to do with the S1?
1B shares outstanding x .10 = MC $100M. Too high, too soon?
So, for those of you counting the dilution . . . how many shares are we up to now in total o/s? Last I heard, the tea-leaf readers were seeing about 25M every few minutes, so it should be over a billion by now, right?
Can you imagine the impossible task of trying to keep children 6' apart ALL day! It might be doable in the classroom with dividers, but not in the hallway, bathrooms, and at recess. We have three real choices:
1. Face the pandemic head on with our next generation on the front lines.
2. Get a vaccine that actually works and does not cause any serious side effects.
3. Stay hunkered down (remote / online learning and working) until this passes.
But what if this one was just just the first of many to be released using syn bio? There's a lot of money to be made solving a problem that you clandestinely created.
How many shares have they dumped since you started counting?
Likely. And bitter-sweet for him / her.
SPREAD THE NEWS GUYS $GAXY: NEWS!- 20,000 units of COVID19 Shields Ordered"
A substantive PR with order numbers will move this beyond .01.
YA THIS WILL DUMP AGAIN
YA, SEEN YORE, THEY ALWAYS DUMP AGAIN. IT'S CALLED PROFIT TAKING.
Suddenly, that .67 ain't looking so far away any more!
It is possible that you have only a few hundred traders who are even aware of this company. A handful of them actually making trades could account for most of the volume. Investors were in at much lower prices. Will more new investors join? We'll see . . .
PR said they had quoted over 20,000 units. No order was mentioned. Hopefully, they have hundreds of orders by now!
Thanks! Tri-folds are best bang for the buck.
Right around "the corner" . . . so, it must be closer now, right?
Oh, it's those mysterious "T-trades" that everyone loves to analyze.
At $80 each
Over 50M students in school in the US. At even a fraction of the market, there is huge potential here. Now, if they would just coat the plexi-glass with an antiviral (say Brilacidin) . . . wow!