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The CIC plan includes a transition for just the ETD business.
Let them exercise those warrants at 1.40. They still have to pay for them...
A judge has to approve all future compensation. Hopefully, the judge shuts this down. It's one of the good things about bankruptcy.
Lawsuit time. We were doing business with crooks and things don't seem quite right. I think we have a right to ensure things were done above board here..
Maybe these morons were stupid enough to discuss pumping the company over email? Given the reality of the situation, the past comments from management seem really suspicious.
I'd settle for a situation where L3 can't have our top level ETD guys at their top level salary.
Assuming that doesn't occur, this all happened and was easy enough to see. We all knew this was a possibility - which is the risk of investing in an OTC stock.
The NOLs sit with the company. You have to purchase the company to get the NOLs. From there, they would be limited to ~3% per year of the deal price - based on a three month average of the long term exempt rate that the IRS publishes every month.
At the end of the day, they would be limited to taking about $3M of NOLs a year, so most of them would never be used.
The NOLs sit with the company. You have to purchase the company to get the NOLs. From there, they would be limited to ~3% per year of the deal price - based on a three month average of the long term exempt rate that the IRS publishes every month.
At the end of the day, they would be limited to taking about $3M of NOLs a year, so most of them would never be used.
Except we have a report that says they are not similar in the eyes of the biggest buyer of ETD.
That comment was made to make us think "oh ETD is old news, the Flyboard is where it is at". It was an absurd comment for our CEO to make when they have to turn around and sell the product.
There was nothing reasonable about it. Morpho went low because they knew Implant wouldn't make it without that TSA order. I believe Morpho thought they had a pretty good shot at it, too.
We are where we are today because of that ordeal. The only thing that went wrong for Morpho is that we established ourselves with that order and now will probably sell to someone with deep enough pockets to withstand any of those games (I agree with other that prices should go back up a bit once the consolidation is complete).
The only thing I can't understand is why Implant seems to have lowered the unit price the 2nd time around.
They were already competing with both of them on other tenders (some for private industry business where people are more willing to talk) and probably had a good idea what they were going to do based on that competition.
Not true.
We saw the margin go from close to 50% to 30% when they started to fill the TSA order.
This assumes DM is willing to walk away breaking even.
At .19 they are going to receive some % multiple on the .19 warrants. We don't know what it is, but all the recent deduction tells us that it is more than likely not going to be for 1.09. We may get lucky and have something happen (last minute offer) that would change the situation, but it doesn't appear likely.
I could be wrong, either way, but I'd say it's hard to tell where this will shake out. I think we all know it won't be where we once thought it could go, but it will be more than .19 a share and always would have been, imo.
Your analysis of the sales price only factored in COGS and left out all of the SG&A costs needed to sell the product - which is a lot.
Even with the add-ons, there is not a lot of margin there when you're selling the units at cost.
It is due to the loans. That doesn't really matter though. They have $XX amount of expenses and are generating $X in revenue.
At this point, it doesn't matter what is driving the expense. It also wouldn't had mattered when the TSA orders were fulfilled because we're not making any money on them. The European sales are profitable. Those sales were going to occur when they occurred, absent any TSA activity.
The TSA shouldn't be in the business of driving prices so low that people can't compete. The competition shouldn't have gotten to the low levels that it did.
I work in an industry where you can really hurt yourself when everyone participates in a race to the bottom on fees. No one wins in that situation - clients included. I'm not sure why the TSA or our competitors let the situation get to where it is, but they did. The timing of any of the deals wasn't going to change that.
Cut the debt to a reasonable, pre lawsuit and protest number, say $40M.
Then take the financials over the last 2 years and figure out how you repay the debt with the cash flows we have had.
We're in this situation because they aren't selling the 220 for enough money. Even with a well established TSA relationship, it looks like the unit price went down.
They've already shown that these TSA orders are a zero sum game and that they won't help us out of our debt situation. They've also said that the TSA orders help with the ROW, which is where the margins come into play.
Putting it into that context, its clear why the pps hasn't moved. We now know the reality of the situation. In the old days, we thought a huge TSA order would have been financially significant. We now know that is not the case.
They still would need to pay people to sell the product, right?
That's not going to make its way to COGS. They would also need to pay people to travel for installation/training.
Some of the SG&A costs will stay and some will go away. It's hard to break it out, but the overall margin would increase with a buyer. Of course, they deserve some of that margin and won't be paying Implant for their (the buyers) efficiency.
There is more margin there than we currently have, but not a ton. When you're selling to your biggest customer for near costs, that is how it goes.
This is a nice win, but they really shot themselves in the foot on this one with the low bid.
The industry in general participated in a race to the bottom that happened to come at the worst time imaginable for Implant.
We own a much higher % of the ETD business. Once that line of business is spun off. We own a much higher % of nothing...
We'll pay Zapata $15M and give the company some working capital to get 10-15% of the new entity.
It's not this "we're getting screwed scenario that you're claiming. After the ETD deal is announced, you can exit the stock and not worry about Zapata.
Fair enough point.
I'm not sure Platinum cares what happens, one way or another.
They may have agreed to publicly support the deal, but they didn't lift the blocker provision did they?
If the deal falls through and we sell the ETD unit, they'll still get paid and will have made a nice multiple of this investment.
They get their equity and then sell it back to current Zapata investors or to Zapata the company for a reduced rate, but at a profit for them.
That or someone at Platinum likes the company enough to purchase the shares from Platinum?
Either way, it doesn't make a lot of sense for Platinum to take on shares when they can receive cash instead. I can also see all of this talk as a bluff to get IMSC shareholders to vote through the deal - which may benefit someone somehow. It doesn't really matter, right? Either we think the Zapata acquisition is a good idea or we don't.
Did I miss something here?
You typically don't patent software, right?
All that does is invite someone to come in and tweak your design enough to get around your patent...
They won't/can't convert those shares in time for the Zapata vote, but they can and might exercise them after the deal is done.
I have no idea what they will do. If they exercise, I'd imagine they'd do it exclusively to receive additional ETD money and then they'd turn around and sell those shares in a block to someone else. They'd only do this if the end result is more cash to them.
In the long run, I can't see a scenario where DM is holding shares past 2017 as they are in the process of winding down their funds. Any talk of their continued support is meant to reassure people more than anything. IMO
I'm not...
Just for the record.
They haven't been able to make a best in class product work and they're going to attempt to define a new market. It's possible, but it will be difficult.
I'm still here because I can't imagine a scenario where the ETD unit doesn't attract more funds than the current share price reflects. Of course, we've taken a beating every step of the way, so who really knows?
Trading this thing has been the only winning strategy here - as it swings hard several times a year. Everyone else has gotten screwed. After 8 years, it would be foolish to expect anything else but disappointment.
Of course, I reserve the right to be delighted.
Looks like they've sold over 10,000 of the water toys over whatever period...
So they have grossed at least $30M, right?
There is going to be nothing worth noting from this call....
It's a canned PR opportunity.
Q: "Tell us why this is so great..."
Unfortunately, I didn't get on the 100% gain over the last week, but that doesn't mean it didn't happen...
The volume has been impressive.
I hate this kind of stuff.
It's not all or nothing here guys. They have significantly underperformed as an investment over the last couple of years when compared to the overall market.
We go up and we go down. The business makes progress and then we get reminded of the terrible equity and debt structure of the company. It looks like positive changes may be coming, but lets not pretend that the last couple of years here haven't been absolutely terrible.
I can justify a lot of it, due to the financing that had to occur in a difficult time for the company and world economy, but that doesn't mean it hasn't be tough.
He never answered mine...
They gave up 40% equity for $27M and a spot in the US capital markets/a US registered entity.
They clearly have plans and need working capital to achieve those plans, so they were looking at a capital raise - either way. Outside of that, they got on the US exchange and will save money on the millions it takes to do an IPO. They also get someone who can at least get their foot in the door with military applications.
They are the market for this stuff and that market is brand new. There is a market there, but it is unknown how it will progress (if at all). They aren't going to get what they think is fair value without capitalizing on that market and it may have been hard to get someone to buy them.
Either way, they aren't selling to Implant, so our past doesn't really matter. It will be "the past" if and when this deal goes through. What they gave up, for what they are getting, this deal makes sense for them.
Two reasons it benefits them:
1. They do not need to file disclosures if they can keep it under 5%.
2. It gives them an easy out when it comes to selling shares into the market. "If you guys want to pay the interest in shares, know that we'll have to sell those shares into the market in order to avoid the 5% blocker limitation"... Not that they would care, either way, but they can always use that as an excuse.
They can always waive the 5% requirement. That is there for their benefit, not ours.
My expectation is that they will not need to convert the warrants they were just issued - as the ETD sale should give us what we need for the Zapata acquisition. For the preferred shares that they can convert, I'd imagine that they will convert and then sell those to current Zapata investors or back to the company. Ideally, we could take the ETD proceeds and buy those back. Hopefully, DM would be willing to sell them back at a discount, but who knows?
Long term, I can't see how DM stays in the picture as they are have said they won't be around past 2017. I think the talk of their support is there to give us a good position at the ETD negotiations table.
You're misinformed.
DM can only convert up to 5%. We will have the right to approve or deny the transaction as it needs 67% approval.
Also, Zapata does have sales. I've seen their product in use myself.
I'm pretty sure he didn't sell it to GE for $500M.
GE sold it later on for $580M, so i'd be surprised if they sold it for that small of a gain.
There is nothing unique to Zapata in terms of the hardware they are using.
What they have been able to do is turn that hardware into something actually usable and functional.
The actual technology is incredibly inefficient and not really suited for power production.
Those warrants at .19 probably won't be exercised. The stipulations on them make it clear that they'll only be used for funds to close the deal. Hopefully, the ETD sale will make that unnecessary.
PP is closing shop at some point in 2017 and may be out of money/a ponzi scheme, I doubt they'll be around for much longer or that they'll convert and hold 100M shares. All of the talk that they will is being done to give us a stronger position in the negotiations for the ETD.
10 suitors*
More than 1 less than 10. Probably not 10 and probably not 2.
I think they get a straight % of the deal proceeds with the CIC plan, right? Roughly 10%. It would be great if we could find a way to get rid of that - maybe minus Glenn's deal since that was part of his severance deal.
They certainly have not maintained the share price in the same way that deal was put in place to reflect.
If they can get some government money to help that years long transition, i'd be all for that. The government has funded the tech before.