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.
As I said: this news is really that they have just been BOOTED off the NASDAQ Global Market which is the large prestigious market to the junior NASDAQ Capital Market.
Of course that's better than getting kicked to the OTC but it's still an insult IMHO. The percentage of companies that get booted off the Global and make it make is pretty grim IMHO.
Really not a big deal though. IMHO the company never belonged on the Global anyway and this won't affect trading.
However, what I find OUTRAGEOUS is a line in the press release saying the move to the junior exchange is "At the Company's request" LOL! Of course if they didn't "request" it they'd be on the pink sheets this morning.
These guys are good!
I think they'll need another $5M to get to July so who knows what the FD share count will be by then. We are already over 100M and you can bet EK will chow down on some more RSUs and imagine yet another deal with 200% WARRANT COVERAGE lol. Needless to say I think we might be looking at a 1 for 20 or 1 for 30 reverse split.
IMHO....
This Biloxi deal is puny. 3 servers and a 100 concurrent user VMware Horizon View license.
I'm pretty sure they are about to get booted off the Global Market to the junior Capital Market which would give them 180 days. My understanding.
"""The Company has 180 days, or until January 30, 2017, to achieve compliance with the minimum bid price requirement. To regain compliance, the minimum bid price of the Company's common shares must meet or exceed US$1.00 per share for a minimum of 10 consecutive business days during this 180-day grace period.
If the Company does not regain compliance with the rule by January 30, 2017, the Company will be eligible for an additional compliance period until July 29, 2017; provided that the Company apply for and meet the initial and continued NASDAQ Capital Market listing requirements."""
There does seem to be a deep pool.
Another day, another round of massive dilution.
Today ANY disclosed they gave 5,161,030 RSUs to the 3 employees coming over from UCX.
Since Friday, they've issued 16.9 million shares, 33.8 million warrants, and 5.2 million RSUs.
That's 55.9 million shares worth of dilution in only two days. Not too shabby when the share count on Thurs before this was 50.8M. And what did they get in return? A few months of cash and a small little VAR?
Look for a reverse-split notice in the next 24 hours.
All IMHO.
Opus Bank blew up today. Having to raise capital 30% below market prices amid more huge losses in their lending book.
Wait, what? What about that huge "refresh" deal on a rolling 90 day time table to book $10s of millions in revenue?
Someone please explain what is going on here I am confused.
Speaking of what happened, has anyone asked Novarad about NovaGlass lately?
Hoooo boy!
And what happened to the supposed asset sales and indications of interest?
Are shareholders better off having the diluted share count 2X in a day for a few months of cash?
I would be livid if I owned this and rode it down.
Heck I'm livid just witnessing it.
Does anyone find it odd they put out that puff PR the same day the the transaction was announced it "had been completed" ?
Makes one wonder if the PR was intended to create liquidity in the stock.
For 30 cents you get one share AND a one year 40 cent warrant AND a 55 cent 5 year warrant.
I've honestly never seen a deal with 200% WARRANT COVERAGE.
LOL!
I'm guessing "MF Ventures" is Victor MacFarlane. I wonder who else got in on this deal.
Basically you can subscribe, dump your stock at potentially a 20% instant profit (36 cents vs 30 cent cost) then ride the upside on 2X the shares for FREE.
Hah. What happens in 3 months when they need (IMHO) another $5M to meet payroll?
On the surface, my speculation is what we are seeing here is EK and his cronies (eg MacFarlane) wiping out shareholders INCLUDING Cyrus who just got diluted massively on their equity - but they probably only care about their debt at this point.
Of course EK and PT can feast on RSUs to keep their dilution down.
IMHO we are now officially almost in toxic death spiral financing land.
Also note the Cyrus bridge has to be paid back almost $200K per month so that adds $600K to the quarterly burn right there.
The fully diluted share count is well over 100M now with only shares and warrants.
What a slap in the face to long time shareholders.
They should have done this as a rights offering to allow every current holder a chance to participate. Heck I would have done this deal - I'd dump the stock right away and start selling call options knowing I was hedged with warrants.
Now you have a nice fat reverse split to look forward to as well.
But don't worry. They have they amazing news of a "marketing campaign".
Wow!
I knew these guys were desperate, by my lord. That is downright toxic.
HAHAH LOL!!
16.9M shares plus 33.8M warrants!
That's 50.7M shares worth of dilution - almost equivalent to the current share count!
And this is all before potential conversion of Cyrus debt!
"""Looks like they fooled Microsoft again. Dumb old Microsoft. Hugo and Derek should call them up and set them straight."""
Are we really back here again?
Why wouldn't Microsoft want companies to host their software on Azure. That's what it is - a HOSTING PLATFORM. ANY has to PAY MICROSOFT. Why wouldn't Microsoft like money, and someone BUYING their product/service?
It's been on there since 2015. It's 2017 now.
Can't believe you guys are still clinging to this. It's like a 2-year flashback.
"""They were supposed to run out of money months ago, according to some posters"""
They did run out of money. Cyrus had to give them a 20% interest rate loan in September. That loan starts amortizing in 5 days (to the tune of $192K per month in paydown).
They should be very close to being on the mat again. They have $5M on Sept 30 and burned an average of $5.2M per quarter in Q1-Q3 in cash flow from operations. My guess is they are stretching payables now. If Q4 was materially better you wouldn't have seen Cyrus resign in digust and write a nasty letter.
Expect "news" any day regarding delisting from the NASDAQ Global Market to the junior NASDAQ Capital Market, a possible reverse split, and either a financing (you better hope) or a restructuring (you better hope not).
"""cash has materialized to buy another company and start a new marketing campaign."""
Where is it disclosed that they used any cash for the acquisition?
The "marketing campaign" PR seems like a desperation move to be honest. haven't they been doing this since Nov 2015 when we got "Glassware on Azure" ?
Glug glug glug on the Kool-Aid.
Valid point.
Using a standard video codec makes way more sense. If they are able to use Javascript but kick the processor-intensive element out to a GPU or other chip that would seem to make some sense.
I think any value to Clipstream is less about plug-ins (really that's a 1998 problem) or transcoding savings, and more about whatever features they build around video.
There's a lot of money to be made around video technology and applications. I just don't really see evidence that the CEO can execute on any of it, let alone formulate or communicate a cohesive strategy.
If I were them frankly I'd be pouring all of my R&D back into PlayMPE. Do what you're good at, and stop doing what you are awful at. Sounds weird I know.
Yeah it's hard to pin down and the explanations seem to morph over time.
I think it was this exchange w/ an analyst that gave me the impression:
"Hubert Mak – Cormark Securities
Okay. And then I guess in terms of selling to new territories and new recipient types, is Universal going to help you with that or you guys need to go on your own? Or what’s the strategy there?
Steve Vestergaard
They’ll help us with it. So the idea is mainly they have to market to their own sub-labels. So at the parent level they tell the sub-labels that they want them to use us but we still have to go out and train them, we have to get radio onboar. We have to make sure that lists are accurate, that we meet all the industry requirements. You know, some of the industry requirements vary from country to country; if there’s any incumbents there that we’re compatible and we work with the reporting systems and stuff like that that are in those countries. So it’s not really a sales effort as much as support and training into new territories."
That "they [UMG] have to market to their own sub labels" comment implies that the sub labels have discretion to use or not, and some combo of UMG parent and DSNY have to "sell" them on it. So Steve complaining it is out of their hands may be partially true.
I came across this in another call:
"Steven Vestergaard
So the expansion is mostly going to be geographical. To some extent, it will also be a change in recipient type. But you got to remember, the different departments in the label run somewhat independently. So at the parent level, they are ready. They are raring to go. They save a lot of money. They have been wanting to protect the content from security. They have a dictate that - everything that comes out of Universal is supposed to be secure. They are not allowed send out in that unsecured format. But they have to go out, and they have to train and market to their own sub-labels. So in each new territory, and as you can imagine, a lot of the territories are smaller, and you have got the language issue as an issue, they have to literally go in an train and market to those people. They also have to get radio to understand what the system is, and to get on board, and they have to make sure their lists are accurate.
So one of the things that we found, when we went to the UK, is that some of their lists have inaccurate email addresses. So if you try it a trial and you send stuff out, the download rates can be low. So there is a few things we are looking to do to address it, and we kind of talked about some of them, like the new social media site, and things like that, things that make the marketing people and the label want to use it."
I think basically what happened with UMG is they lowered the fixed contract value but gave DSNY the chance to earn more if they (DSNY) could get other UMG subsidiaries / countries to adopt and would be paid based on volume. I think Steve complained about having to go and sell these other divisions of UMG. Steve obviously thought it would be easier to do this
And V3 they said was "accretive to revenue" lol. Which would be true if the bought a lemonade stand doing $10 a day in sales.
My favorite though, well one of them, is when the cite improving "EBITDA loss per share" because the share count is going up massively. Think of how small it could be if there were a billion shares outstanding lol.
When ANY bought V3 they said it would be "accretive as well". What they put in the PR was "accretive to revenue".
Buing these small litte VARs doesn't change anything in my opinion. If I had to guess this company may have been on the mat.
Interesting interview I just randomly stumbled across:
https://twitter.com/keubiko/status/820627124147159041
>>>Hugo (estimation expert), why ANY still around $0.3 and not $0.0003?<<<
My speculation is for the same reason SUNEQ is $0.10 and not $0.0003.
SUNEQ has already filed for bankruptcy, and even the judge said it is hopeless for shareholders. However there are literally hundreds of bagholders that are convinced they will get something and some poor souls are even buying more.
IMHO a combination of true believers, daytraders, chartists, perhaps some short covering, etc.
One could also own shares and lend them out at a high interest rate so there's a timing element to a prospective bankruptcy.
I'm not saying 100% it's a bagel. You never know what kind of mupp might come along and give them some more cash. Or maybe they'll find a merger partner. Overland was going to be a bagel before Cyrus jammed it together with ANY.
So at this point I view the shares as an out of the money call option on "something, anything, good" - high chance of expiring worthless but you never know.
"""Interesting to note that they paid a premium for the shares and the issues shares were valued at almost .43 per share. """
They didn't "pay" anything. The shares were printed and given to them. The price is not negotiated it's formulaic - the average of the last 10 trading days of the quarter.
There is no good news here.
Cyrus has no choice but to accept those shares in lieu of interest. It's at the company's option. Better question is how bad are things that they company has to do this?
Frankly I expect a big shoe to drop any day now.
""Cyrus accepting common shares in leu of interest.....If it were so dire, exactly why would that happen?""
It's not up to Cyrus. It's at the company's option under the terms of the convertible debt agreed to long ago.
Care to rethink your statement?
It means that ANY is printing common shares at a rate of 3M+ per quarter to pay Cyrus interest in lieu of cash. That's 12M shares of dilution run rate and the lower the share price goes the more dilution there is. It is toxic.
They pay interest in shares at market price because they are so broke they can't afford cash.
"""How do you know about Clinton's call options, by the way, that's not exactly public info."""
Actually, it is EXACTLY public info. Clinton files quarterly 13-Fs and has to (and did) report call option positions on ANY.
They also wrote a silly letter last year demanding that the company be sold for $10+ lol.
Ignore what? One of the other six doesn't even own stock. One is "Clinton Group" which has been selling and wasted gobs on expired call options. Susquehanna is a quant fund that has an average hold period of something like 45 seconds. Cyrus is the creditor seemingly on the verge of calling their debt.
The point is the data you point to is garbage and wrong. When data is garbage and wrong you can draw conclusions that are also garbage and wrong.
You seem to be spinning some lame narrative that "institutions" are piling in to ANY. It is simple wrong.
Sorry to burst your bubble.
"""Hugo, the fact stuff keeps getting in the way of your narratives"""
Hah. Here is a lesson for you.
That is garbage data.
A) the list of "Top 10 Institutions", it includes:
Eric Kelly (the CEO)
Peter Tassiopoulos (the President)
Glenn Bowman (a director)
Victor McFarlane (a high net worth investor)
That is 4 of your "top 10 institutions" right there.
B) The percentages are wrong. They are using a stale (lower) share count.
C) The position values are a mess - e.g. it shows Cyrus owning 7.7 million shares worth $2.7M, but shows Victor owning less (5.5M shares) but being worth $6.3M. Let me know if this point needs further clarification on why it makes no sense.
D) It even shows Dimensional Fund Advisors as a shareholder. They were an old Overland Storage bagholder but own no shares in Sphere 3D. Here is their 13-F to prove it:
https://www.sec.gov/Archives/edgar/data/354204/000035420416000058/xslForm13F_X01/Q32016_13F_Filtered.xml
Gibberish.
"""Interestingly, there are still 20 institutional holders and 50% more buyers than sellers in the past month."""
Almost all of the "institutional" holdings (87% of the NASDAQ reported figure) is a single entity - Cyrus Capital partners which is also a CREDITOR of Sphere 3D and owed $27M. They just resigned from the board and I believe they are getting ready to call the loans.
The rest is trivial.
Most of the quarter to quarter "increase" you see is simply Cyrus getting issued stock in lieu of interest payments because ANY is so strapped for cash they have to pay with stock.
"""50% more buyers than sellers in the past month."""
What does this mean, exactly? Every trade has a buyer and a seller. It nets to zero. You can't have more buyers than sellers. Or are you talking about "institutions"? If so you can't get monthly data, at best you can get quarterly 13-Fs, 45 days after the end of a quarter. So you'll get December filings in the middle of February.
There is no credible narrative that institutions are involved in ANY in any material way, other than Cyrus which is the biggest bagholder of all.
The most telling part of those links is the date. March 2000!
Almost 17 YEARS ago. 17 years of Clipstream failure and people are still hopeful that the same guy will get it done in the next 17 years?
Basically DSNY is a UMG outsourcing projected. Without it the company is done.
There ARE cool things that CAN be done with video. Lots of companies are doing them. Steve has shown zero ability to execute on any of it.
Has anyone tried tracking down that Microsoft guy that ran away screaming or got canned? I'll bet he has some stories....
There are a couple of simpler explanations for PT resigning from Northern Sphere. IMHO.
That company has the same address as Sheldon's office, and Sheldon is on the board. It's possible he and PT simply had a falling out over ANY, if Sheldon stayed on as a bagholder to the end. He certainly represented as much to the secret Twitter group.
What I suspect is more likely is a securities issue. Under OSC regulations if someone is a director or officer of a company that files for bankruptcy, it has to be disclosed for years in the filings of other companies in which that person was involved (eg in a prospectus). It's possible IMHO he rolled off so if ANY files then that company won't be directly tarnished. Just a guess.
Seems too coincidental that right as ANY runs out of cash and Cyrus starts to go bananas that he steps off this other board. He is one of the largest shareholders in that entity and board work at a microcap minor is a minimal time commitment.
Another explanation is that PT wants to raise money for that entity and wants to avoid related party disclosures on his fees, like with ANY.
Just some guesses. Could be he is just stressed.
Usually lenders roll off the board for one reason: they are getting ready to call the debt.
Sorry but that's just how it is. Cyrus could have more easily influenced things from inside the boardroom.
IMHO.....
There won't be an equity committee. Zero chance. Equity is getting cancelled. 100%.
It's all there in the docket. Even if their assets were worth 2x the market value there is still nothing for common holders.
This is a fact.
The company never did an IPO. It was a reverse takeover of a mining shell.
Was less than a buck as I recall.
It looks like even Cormark is abandoning ANY. They put out a note after the Cyrus letter.
And I quote:
"But given the balance sheet risk, we are staying on the sidelines on the name."
Thanks a lot Hubert. Pump it from $10 down to 26 cents and now you "move to the sidelines". LOL!
I tried to warn people about the daytrading swarm that was in the stock over the last few trading days. Now they have moved on to the next POS penny stock. Their volume in the face of the awful (IMHO) Cyrus news was a total gift.
I calculate that ANY is out of money now. $5M cash as of Sep 30 and I estimate cash burn is around $5M. Usually companies that are on the brink can stretch things out for a bit so I give them mid to end of Jan as a guesstimate (remember after the Opus money came in they burned about $8M that quarter as they had stretched things so far?)
The Cyrus bridge loan starts amortizing next month. The Opus Bank loan had redacted "business plan" and other unknown financial covenants. The debt all has cross-default provisions.
IMHO it's a game of chicken now. Sounds like if ANY doesn't agree to a debt to equity conversion (which would dilute current holders into oblivion at current prices) plus management changes etc they aren't going to kick in more money and it will be up to Opus and Cyrus to call the loans, in which case equity will probably get wiped 100% IMHO.
The interesting thing is that Cyrus is probably the only one silly enough to be willing to inject more cash into this thing (haven't learned their lesson after $80-90M far), but they rank behind $18-20M of Opus debt. So Cyrus has leverage over management and the equity holders, but little leverage over Opus. But if they are willing to fund a restructuring they might have a bit of leverage w/ Opus - I doubt Opus will want to inject more money given they are blowing up themselves from bad tech loans, but they are dumb so who knows.
Management that doesn't get fired can always get reloaded with RSUs and options in the newco. Even EK if he gets sacked, assuming the company is solvent, will get a fat golden parachute.
It seems the only folks left without a chair now that the music seems (IMHO) about to stop are the poor retail shareholders that funded this whole thing.
Eric Kelly's total comp in 2015 was $2.3M. PT's was only $2M though.
IMHO....
Some sane comments. However in this particular case there IS enough information to calculate that equity is getting wiped. It's all there in the docket and in prior SEC filings.
We know exactly what the debt is - DIP, first lien, second lien, unsecured bonds, and preferred shares (all the instruments ranking higher than common). Almost to the cents.
We know EXACTLY how many shares SUNEQ owns of TERP and GLBL and EXACTLY what the trading price is.
We know what projects SUNE has and what they are selling them for.
We know how much cash they have and are using.
There is no secret stash of assets.
When you stack up the assets, which are known with a decent degree of accuracy, against the debt that is owed, it doesn't even come CLOSE to covering the debt. Billions and billions short. And that is BEFORE the lawsuits like Vivint etc which will add NO assets and only add to the debt.
While in general I agree with the "you never know" argument, in THIS case we do know. And it IS hopeless. Even the JUDGE said so when denying an equity committee (which was ridiculous to even suggest in this case).
10-K and 10-Qs will not add much. Most of the questions will be just around accounting for income and losses etc - this is really and simply a balance sheet exercise now and we know more than enough to conclude definitively that equity is getting wiped.
The only real question now is if the unsecured creditors are wiped or if the 2nd lien will be the fulcrum. 2nd liens trade for 50 cents on the dollar so there should be some recovery there. The senior unsecured bonds trade for 3% of par and will likely receive little or nothing (I own them as I think there's a respectable chance they can get 5-15% of par recovery and possibly will become the new equity. Current common shares will get canceled.