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The first 2 are possible.
The purchase price Mantra paid for the Assets included the assumption of certain liabilities and contracts associated with the Business
Translation:
The unloading of AW to Mantra also unloads a lot of toxic debt along with it. Boom! Double Boom!!
Correct. I think their all time high market cap was ~ 150M
Add refinancing to eliminate toxic debt to the equation and the result is a solid company headed back to the Nasdaq (or OTC QX in the interim).
Looks like the low "friends and family" PPS will remain until ER or refi news.
Obviously earning will be good. Otherwise, they would not be pursuing bank financing. Boom!
Historic Market Cap --> https://ycharts.com/companies/YHOO/market_cap
Nice try moron. They are selling off money losing assets to clear the path for traditional financing. They intend to pay off all toxic debt and not allow the scumbags to convert any more shares. I'm sure you know this already and are pretending to be a seller.
"This reorganization is providing us the changes necessary to attract conventional asset based lending solutions in order to fuel growth in our core areas.”
The are clearing the path for traditional financing based on assets (e.g., accounts receivable). In order for a bank to agree to this, they would also want all toxic loans to be paid off. Think about it, they could continue diluting 100s of millions of shares at pennies to pay off the convertibles while the loan holders are shorting it to zero and making money both ways.
Or...they could secure asset based financing and stop diluting the shares keeping the PPS at a higher price. That would allow them to have an equity offering that is far less dilutive to raise the same amount of money or more than converting another 300M shares. Which option would you choose if you were an equity owner in the company? Duh!
Here is why they shed off AW Solutions. In order to secure asset based loans, the bank need to ensure they have a positive cash flow. In order to do that, they must get rid of all low margin on underwater assets (e.g., AW Solutions). If they secure a $25M asset based loan it will allow them to eliminate the toxic debt and indicate they are cash flow positive. If that happens, they market cap will go back to 2014-2015 level IMO.
Next news will be that the convertible loans have been taken out through refinancing with conventional asset based loans. Per Mark Munro last week on the sale of AW Solutions: "This reorganization is providing us the changes necessary to attract conventional asset based lending solutions in order to fuel growth in our core areas.”
Very realistic post. I think they are working towards a buyout, which explains the AW sale. They are getting this lean and mean very quickly.
Mark Munro, CEO of InterCloud stated, “The sale of this business asset is a continued attempt to realign InterCloud’s business units around profitable higher margin work. The AW Solutions sale has given InterCloud the opportunity to continue to improve our P&L and balance sheet. InterCloud is exploring the sale of other non-core assets as well. This reorganization is providing us the changes necessary to attract conventional asset based lending solutions in order to fuel growth in our core areas.”
The AW asset sale must be a prerequisite to bigger news. Sometimes what seems to be insignificant is just the tip of the iceberg. I expect more news in the near future.
Only 3.6M shares traded w/489M OS. All shares are locked up tight for a reason.
No doubt cloud spending is robust. ICLD is hampered by a disproportionate amount of convertible debt and will not provide gains for investors until they eliminate it from the balance sheet.
Basically, what you are stating is the current price of .025 is the bottom if they are to meet the .10 continued QX listing requirement and that they expect to get the pre RS price to at least .0625 to meet the initial .25 listing requirement after the RS? If so, I agree totally.
You should be looking at it like this in terms of getting to .25 for OTC QX:
0.2500 (After RS) = 0.0625 (Before RS) = +150%
0.1000 (After RS) = 0.0250 (Before RS) = Current Price
The point is they will use the RS to get the price up to meet the OTC QX listing requirements. I think it will go above .0625 before the RS and the post RS price will be .40 or more.
True. Market cap is OS X PPS. But remember, after a 1:4 RS you will only have 25% of the shares you have now. Therefore, the PPS has to be 4X what is is now just to stay even. If, they proceed to add more shares to the OS after the RS by converting debt, then the PPS will drop even if the market cap stays the same. My point is that if the RS is done to allow more convertible debt, then shareholders are screwed. If they pay off the toxic debt before the RS then it will be positive as you stated.
That is exactly my point. Go back and ready my post.
I agree with your post Shotsky. If they eliminate the toxic debt prior to the RS, the market cap will increase. If not, it will drop after the RS since most will anticipate more dilution. The convertible debt is the key factor. I also feel like they are delaying the RS because they are finalizing a transaction that will greatly reduce or eliminate the toxic debt. We will find out soon enough!
de nada
The pre earnings rise starts next week.
There is tons of support at this level. The fact that no one is selling should be a signal that this is ready to go!
They stalling on the RS for a reason. Think McFly...
Everyone knows the deal with ICLD and there will be no movement until they release news. IMO the possibilities are as follows:
1) Asset sale or debt refi is announced before earnings and the stock jumps 200% or more.
2) RS is announced with no other news and the stock drops 50% or more
3) RS is announced in conjunction with asset sale, debt refi, partnership or other positive news and the stock jumps 100% or more.
4) No news is released before earnings and the ER is as expected (or better) - stocks moves up 50% then pulls back to current value.
5) No news is released before earnings and the ER is as expected (or worse) - stocks drops 50% then moves back to current value.
I'm sure there are other possibilities. These seem to be the most probable IMO.
Yep. It's a coiled spring for sure!
Dilution is done until they do the RS. Then it can start whenever the lenders decide to begin converting. My guess is that they pump it up before the next round of dilution. Then, the lenders make money by shorting on the way down. We will see.
Of course, but they need to pay the employees and suppliers first. Do you think they had enough revenue in Q1 to also pay down debt? If so, how much?
Here's the deal. They do not make a profit and therefore can only pay down the debt via stock conversions or asset sales. Asset sales require an 8K filing (as was done in Q1) and debt conversion to shares are tracked by the transfer agent. They maxed out the authorized shares in Q1 in order to pay off $7.5M of convertible debt.
The Q1 earnings release will not reveal anything that isn't already known regarding the debt reductions that occurred Q1. If they refi debt or complete an asset sale, then they must file an 8K. The point is that we need news other than what is already occurred during Q1 for this stock to move up. That information will be released separate from the Q1 ER and since they do not have conference calls any more it will be in the form of press release. That what we are waiting for. It that does not happen before the Q1 ER, then the stock will most likely drop further IMO.
The amount of debt remaining is no mystery that will be revealed at the Q1 report. As of Q4 they had 41M debt. In Q1 they converted 7.5M debt in to shares and they sold an asset for 5M. Therefore, they have roughly 41M - 7.5M - 5M = 28.5M debt remaining. That's what the Q1 report will show. We are not waiting for Q1 results to move the stock because as I just explained, we know what Q1 will show. The ONLY thing that will make it move is a big asset sale or merger news IMO.
ETRADE Pro Tools --> Calendar also shows 4/5/2017 as the date for the Q4 2016 earnings release, but they actually released it in March. I think the 5/11/2017 date is just an estimate by ETRADE. We will see.
What makes you think the float is only 33M?
Thanks for the reply. As you can see, I called the .01 bottom accurately on 2/18. It bottomed at .01 ten days later. I think that will prove to be the bottom. My focus now is to determine the near term top when it starts to rise. I'm thinking .12 - .18 (.48 - .72 post split if and when that happens). Although, it will most likely lose 60% from that point after the RS due to further dilution. That would place it back where it is now in terms of market cap. We will see. It could go much higher than my prediction. I realize this is all just my opinion so make your own decisions.
Well if Ofri and others bought at .40 or higher too effing bad for them. Anyone who bought at .03 or less is golden. Translation: Buy low sell high.
Learn it know it live it.
So you are posting here now on this obscure little stock on the OTC XB solely to advise others to get out now before it crashes? You have no vested interest long or short? Correct? Seems unlikely in my opinion.
Thanks. At least that confirms they will release Q1 in May. They need to do it by the 15th per the regulatory requirements.
At the end of last year the 10K showed 41M total debt. The dilution in Q1 raised about 7.5M and the asset sale in March was 5M. That leaves about 28.5M total debt. Not sure how much of that is convertible debt. I think they have about 18M in convertible debt according to the last 10K, but that will be confirmed when they release Q1.
I believe they have about 28M in total debt remaining. Assuming that is not all convertible debt, the next asset sale should take out the majority of the convertibles. At that point, the market cap should get back to 1.5 revenue or about 100M IMO
No one is selling and dilution is over for now. The stock is primed for a run up and is just waiting for a catalyst to light the fuse. Could be asset sale, buyout offer, refinance, merger, etc. Tick tick tick...