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.
Depends on how you look at it. I like the A/S the way it is. I'm not anywhere near certain, but I don't think a registration filing is required with the SEC for EI to sell shares into the market because the shares that can be sold are treasury stock.
And if EI needs to raise money, I would rather they do that by selling treasury stock directly into the market than trying to go after financing like the one they got thru NAR.
Once EI is out of the woods (we'll see in the next couple Qs...hopefully, after this 1st Q), they can retire a bunch of treasury stock.
The revs coming from Remiere sales will go straight to the bottom line since Remiere is picking up the tab. I like to think of the Remiere revs as royalty payments to EI.
I am upbeat about EI again! Weee!!
I like the Remiere PR!
4th Q sales should match or exceed all of the first 3 months sales, imo. During the Fox interview, Nick stated "we're manufacturing and moving about 2,000 to 2,500 per quarter right now...." Assuming that Nick wasn't exagerating and assuming full sales only for 1 month of the 4th Q, that should still generate revs of $466,000 (=2000/4*699).
Not gonna happen anytime soon because it is not aligned with the strategy of ETNL. You can send an email to Clynt if you want to hear it from the horse's mouth. I did.
What kind of impact would a PR stating that EI has secured a line of credit from some respectable financial institution to the amount of $1m have on the share price?
Come on EI. You have done a lot of unsavory things to ensure that the company survived through the production phase. Now that you are on a more secure footing with the restructuring, I believe its time that you pay back your shareholders ten fold.
I can't believe there are still so many here that are so concerned over some stupid vehicle allowance. It is a ceiling. Meaning, they can use UP TO the amount of the allowance.
No, if NAR plays to its greed, they will control their selling until they make the money they want to make. jmho.
Why do you say that? Assuming EI got those treasury stocks somewhere between .0012 and .005, they can sell them, if necessary, at .035 as of the close on Friday. You're implying that they needed to be able to sell all 4B shares. If that is true, I would flee and never look back. Even the 1.3b in the treasury is over the top if they plan on selling it all. However, corporations use treasury stocks in a number of ways. The pessimist assume that they will sell them all for needed cash. I would be surprised if they need to sell more than 20m shares at $0.035. I am more concerned about NAR dumping shares and making it difficult for EI to raise needed capital. I believe NAR wants to keep EI under their foot and milk EI for as long as they can!
What are you trying to say? I'm not disagreeing with you. Just pointing out that if there are that many shares in Treasury stock, then it means EI did perform a significant buyback pre-RS.
Don't fret over 20%. There are bigger issues. Besides, its done and water under the bridge.
I must've missed the data about the number of treasury stock as well. Care to point out where you found this info?
The number of treasury stock implies the following:
- The company bought back 1,380,571,988 shares pre-RS.
- The RS did not affect treasury stock.
Also, I didn't catch this before, the the RS on the preferred is 1 for 10. (?)
What I see here is maneuvering by the company to create a share structure that allows them a lot of flexibility.
Last year, this is how EI pursued financing:
- Raised $1m by selling shares on the open market.
- Personal loans.
- Convertible note to NAR (last resort).
(The first two not necessarily in that order)
This year, the same should happen. Except, if sales track projections, the company should not need to raise funds beyond the $1m allowed via sales on the open market. If EI's operating expenses are anywhere near their projections, EI should not even need to tap all $1m. If sales exceed projection, EI may not even need to tap us for financing, but let's not kid ourselves too much.
I believe EI is sincere in wanting to succeed and make shareholders happy. However, I also believe, as you all should, that they will do everything they have to to survive. I repeat again that the company has never lied to you, but they have let rosy assumptions lie.
Confirmation of sales for the past 4th Q followed by growth in the 1st Q should show the story fairly clearly. Hopefully, LFM is also experiencing sales growth. ;)
GLTA.
I have no objections to that statement about what EI anticipates to spend securing licenses. The point I'm making is that you can't assume that the cost of securing the license includes any royalty prepayments. The prepayments were significant last year so I would expect it to be similar this year with any new licenses, particularly if it is with outfits like NFL, Harley, etc.
Current share structure for OS and float is in the uplist filing. AS was made known in yesterday's PR.
I have my doubts that the projected expense of $750k includes costs related to new product launches. If it does, great. But I would be surprised if it did. I do like it that they have a lot of prepaid assets, though it may not be the best way to manage cash. We won't know that till much later, but at least these prepaid expenses will keep expenses down for the next few Qs.
I missed that. Is it in the uplist filing? If what they are saying is true, then they are in REALLY good shape so long as their sales meet their projections. If only NAR didn't have the leverage to implode the PPS...that would make me feel so much better.
That's about half of what I think, but I was being pretty conservative. Care to share what you think the margins are on the pet urns?
That may be true, but if you look at the latest financials, EI has an asset of $300k+ called prepaid licenses and royalties....or something like that. Check the balance sheet. It could be that EI has to prepay up front to show good faith.
Just a little bit dated huh?
If EI PRs a new licensing deal, I would be accept the dilution, if it comes since they will need to pay for it up front. So, EI, get that PR out.
Me too. I would think EI would do all it could and issue a PR, even if its fluff, in an attempt to prop the PPS, regardless of the futility of it...just to save some face.
So is there another PR scheduled for today? Didn't someone write that there would be three this week?
Racerx,
Its a good thing the tou of this MB prohibits personal attacks. However, it doesn't state anything about a corporate entity. So, imo, NAR is worse than a loan shark in a third world country. I admit, NAR did provide a service to EI and that they accepted your terms tells me how desperate the company was. However, most parasites don't try to kill off their host. I sincerely hope EI never needs NARs services ever again.
You are right, there does not seem to be any correlation between the itra-day low of the PPS on 12-17 and NAR exercising the convertible note on that same day. At least none that I am able to dig up from my limited knowledge.
I will have more to say about NAR once my friends that I've talked into buying ETIM stock have had a chance to liquidate their shares.
Till then, don't disappear as I will be very interested in hearing your response to my future statements.
Yeah, I was. I'll have a lot more to say on that once I've confirmed what the intraday low of the PPS was on 12-17-2007.
Its dilution alright, but it may help to think of it this way:
The company raises $1m by selling x-number of shares. If they are able do this without dropping the PPS, we all have the same stake in the company on an equity basis. Unfortunately, this won't be the case since the supply of shares will likely outstrip the demand and the pps will drop.
The pps dropping should be a temporary event since everyone here that believes in the long term success of EI will act on greed and wait for the 504 financing to be complete (PPS at the low) before they buy all they can driving the PPS back to where it started dropping or higher (see the rally after the end of last year's 504 financing).
Also, keep in mind that should this be the last time the company needs to raise funds, then the 504 financing will have been well spent. In other words, the company is raising money to invest in the company.
Its a bad event for short timers or those that have too much money at stake, but for those that have longer time horizons and believe that EI will be a successful company in the end, the payoffs will be worth the stress of riding through the hard times with EI.
My only complaint is that we, as retail investors, do not have the same leverage as private investors to know as much as we should about EI or any public company that we decide to invest in. That's the game and we all have to play by the same rules....well, most of us anyway.
The following statement appears on the 2nd page of the uplist filing right after the section "Calculation of Registration Fee":
THE COMPANY HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE COMPANY SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
Does anyone know what this means? I WANT to interpret it to mean that these shares are not yet sellable, but I don't want to get my hopes up.
Um...I don't get how that post answers my questions. Can anyone tell me what the intraday low on Dec. 17, 2007 was? TIA.
Wasn't Dec. 17th the day the PPS his an intraday low of .0012?
Well, I've had time to digest the uplist filing -- at least the parts that I was interested in. I am SURE some of you out there at least have seen the same things I've seen.
First of all, I have to admit that I was wrong. The company did actually raise $1.2m with the private investors.
Having admitted this, and blushing while doing so, the method (convertible note) is something I was very concerned about and asked EI not to employ if they could help it. Seeing that they did and being aware of the pitfalls, I feel that they had no other recourse.
In retrospect, I have only myself to blame for suspecting that the company was in such dire straights, but choosing to ignore it and play on the side of ignorant hope because I believed in the idea. The company must and will do what it must to stay alive. If that means not being entirely truthful to its shareholders, then so be it. This is the way with all companies. Business is a game of survival of the fittest. I'm sure that if EI was in a position to reveal its hand and still weather the storm ahead, they would have.
Now on to the good stuff...I'll only point out the dots I've uncovered so you can connect them. Remember that recent day when the PPS was taken down to $.0012 (pre-RS)? Can anyone tell me what day this was? If it is the same day as when NAR decided to exercise the conversion, then you can be assured that the take down was manipulated. But, without confirming that these two events correlate, there is no point in me continuing. So please, can someone dig it up? I would and I've tried, but no site that I frequent shows that history -- particularly because of the ticker change.
What to expect? PPS support followed by dilution leading to PPS decline followed by some buyback of shares. That last part really depends on whether sales meet or exceed their projections.
When I saw the PR about the paperwork being filed, it pleased me and I jumped back in, but for only 1/4 of my original position. I'm interested in seeing the other PRs this week and am only in to flip until I see certain other events transpire. I'm sure others of you also know what some of these events might be. I'm curious to know how many of us there are in this mexican standoff.
Anyway, good luck to all. Once we get past the next 6 weeks, and if sales meet projections, there will be nothing but clear skies ahead.
Go to the investors page on the EI website. Good read for any investor.
"We want to be clear: we did NOT raise the authorized number of shares."
I should hope not considering its still at 5b.
From others posts. I don't know for sure. Could be sooner or later.
LFM,
I'd like to hear your thoughts on how EI will finance operations for this Q and possibly the next few Qs until they are profitable. I'd like to think that they could already be cash flow positive, but I find that doubtful. We know that they operated in debt last year and paid for it via a generous amount of shares to private investors.
They could be operating in debt again and employing the same strategy. I posted late last night my guesses for sales to break even. The positive I saw was that EI apparently paid for licensing and royalties last Q so cash flow due to these items should be minimal for the next few Qs.
No, I told myself I would stay disciplined this time. I figured there'd be a rally, but I didn't wnat to take a chance on bad timing.
I will wait to see what the company has to say. The only excuse for an AS that doesn't track with the new OS that I will accept, and it will still be taken with a lot of complaining, is if they PR that they've filed for uplisting.
20 to 1
Sorry Tex. Its been posted that some brokerages (perhaps all) will not allow you to sell any shares that you help pre-RS until they've received those shares from EI. All this should be settled by Friday(?)
Are you wanting to know because you want to sell now at .004(?) or higher for profit? I have to wonder how many others with frozen accounts are thinking the same. Any rally between today and Friday, without any significant PRs from EI, will be gone by the time everyone is able to sell their shares again.
I hope for you and everyone else's sake that EI follows through. Unless of course, they are employing a strategy that attrackts the big institutional investors, for which this RS was done.
Dancy, I got out with all 3 of my accounts at .002 and .0021 -- still at quite a significant loss. I was amongst the first 3 or 4 posts right after IRISHBULL(?) posted the DD about the RS.
No need to attack me. I am stating my opinions on the matter. That you are still beholden by EI is your business and I say kudos to you and wish you all the success.
I was burned when I realised they let me dupe myself thinking they raised 1.2m last year. I kept the faith and stayed on a steady course adding more on dips. Then, amongst all the assurances of no RS "being planned", they stick it to me again. And on top of that, they have seriously poor numbers up the the 3rd Q of last year and all I have is their "word" that 4th Q is more indicative of normal sales and growing. Finally, their financials show me that they do not have the funds to keep the company running -- they must raise funds. And lo and behold, we get an RS, a very typical pinky tactic to raise funds. To offset the obvious, they put out statements, by word of mouth that the company did this to attract big investors. All very plausible, which makes it so difficult to simply walk away from it all. So I sit and wait to see what develops.
I've seen this kind of price action before post RS. Careful, some people with deep pockets will run it up to get you to jump back in hoping that they can recoup more money than it took to run it up and leave you holding the bag. I fell for it then. I'll wait for the news before I fall for it again.
Everyone here has seen the financials? Haven't you? They MUST find some operating funds. Question is, how will they do it? Dilution or some kind of loan? At this point, I'm inclined to think dilution based on their behaviour.