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In all seriousness
We don't know much about the acquisitions that have been done so far and how they've been financed. If you read the notes from the meeting that the only shareholder that I know has had with them, they allude to revenue share with an acquired entity (the one that has the largest US B2B database). There was no mention of acquisition finance from what I can tell.
We do know how they did a private capital raise last summer, but the details haven't been revealed. The interviewer did not ask about the capital raise (mind boggling) and the use of proceeds.
Presumably, they intend to use stock for future acquisitions. This makes the RS all the more puzzling since it destroyed market cap. It did free up some shares for issuance, but they could have just as easily raised the AS to accomplish the same goal.
They have suggested that whenever the upcoming corporate action goes through that they'll reveal the "plan".
It was a joke
Only advice I can provide is to ask the IR firm, bit they probably won't say anything. Have to wait until the corporate action.
Ask Tommy
I'm sure he will gladly give you the information you need:)
Agreed
It was TDS management that was greedy and lacked common and financial sense. No one in their right mind would have anticipated a RS applied only to CLHI shareholders. Pure stupidity.
Stock doesn't need news to go over $2
A couple of sizable trades will get it over $2 very quickly. Meaningful news and the stock likely goes much higher than $5 with this thin float and small share structure.
IR guy said there was "meat" in the PR
If it was simply a confirmatory PR for an RS, it wouldn't require much "meat". A two or three line PR would more than suffice.
I can't guarantee anything when it comes to this company, but I strongly suspect we'll hear about an acquisition. Can it overcome the other overhangs? Time will tell (to borrow another line from the email that IR apparently sent out).
At this point, release anything that might be positive
Is my point of view. Stock and sentiment are in desperate need of something positive to shift the obviously poor dynamics surrounding the company (from a shareholder's perspective).
It's all been so poorly managed.
Let's hope it's an acquisition
I'll be curious to see how the stock trades if we finally get a positive catalyst. Lot of shareholder ill will needs to be overcome at this point. Not a lot of supporters of this management team are left. Do they have a plan to win those lost supporters back?
Thanks for your work on this name
Much appreciated. I'm looking forward to the acquisition PR and seeing where the stock trades after that.
My current views
There was obvious disappointment that the company didn't release a PR about the acquisition. With a thin float, moves get magnified in both directions. This gave some an opportunity to buy more (as I did) and the catalyst traders a reason to exit.
As compared to the other company the CEO highlighted, I think CHIF is much more compelling. Our share structure is better and the sectors we're targeting (esports, crypto and possibly NFTs) are more interesting (IMO). If we can achieve a comparable market cap to the other company (ie. T-NMD), then this stock is obviously a multi-bagger.
Capital raises
There's obviously been a fairly rapid succession of capital raises. They have been on favorable terms (ie. close to prevailing market prices), but I think the market wants to see what they're going to do with the money. On the positive side, the balance sheet is fortified and hopefully now they will take a pause and execute.
Corbett's warrants strike at $0.24 and they're exercisable on a cashless basis. He is strongly incentivized to get the stock price demonstrably higher to limit the number of warrants he forfeits to cover the cost of exercise. His interests are strongly aligned with shareholders.
I suspect they have some acquisition targets lined up and needed more money to execute on them (ie. pay deal fees and other upfront cash costs to close them). Having HC Wainwright as the underwriter on the latest deal is interesting to me. I have to imagine they're in this not just for the fees associated with this capital raise. They probably want in on any M&A fees and follow-up activity.
I followed the link as Tommy suggested
And refreshed my memory about the types of corporate events. Logic would suggest that they're keeping quiet because it's either the RS or an acquisition announcement. Keeping silent if it's an acquisition is reasonable, but doesn't excuse them from repeatedly indicating times to release news and then missing those targets. If it's the RS, then why not just issue a PR and state what they're doing? Perhaps they are afraid of the certain backlash and just want to "surprise" the markets after the fact.
Sorry Pro
Company is tone deaf and operating in an alternate universe.
Added today as well
Hoping they can find an acquisition that's as well received as T-NMD.
Sounds like a rather ominous exchange with IR
Perhaps Tommy was better than this Stanley guy with the IR firm.
The optimist would say..
It's growing pains for a small company that is experiencing rapid growth (we hope) and doesn't understand what it means to be a public company (ample evidence of that). The pessimist would say they have deeper issues to fix. Not sure where I fall at this point other than being confused most of the time about Stephenson.
Agreed
Tommy keeping quiet is a good thing as you suggest. I just wished they'd deliver information in a timely manner, but that hasn't happened at any point, so not sure why I was hoping for better.
At this point, I'm waiting to learn more about the acquisitions that have been done and additional clarity about the assumptions underlying the projections.
This type of raise is typically the prelude to an uplist
Note the underwriter is HC Wainwright, which typically doesn't do deals for OTC companies (correct me if I'm wrong).
I have to wonder if they're working on an acquisition and this financing is going to be used for that purpose.
Should be interesting.
Don't see any corporate actions for CLHI on the Finra daily list
If someone else finds something, please let me know. Doesn't seem like Tommy will be updating shareholders today.
Another swing and a miss, but at least the week is almost over.
I haven't heard anything positive about the IR team either
Seems like they aren't particularly helpful. They might have their hands tied until the corporate action is announced. I'm trying to be optimistic that they will eventually be helpful.
Tommy referred you to FINRA for a list of possible corporate actions!
Really helpful, huh?
SMH
I won't rehash what transpired
All I can say is that the market view of this company, at least from US shareholders' perspective, is very negative now. No one believes what they say. Consequently, there's a steep hill to climb to earn back trust. It can be done, but we haven't seen any evidence of a meaningful effort to regain investor confidence (IMO).
This doesn't mean that the company isn't doing great (certainly seems like it is) and that the market cap couldn't be a lot higher at some point.
I don't have a lot of experience investing in British companies either. I will certainly view any future opportunities with a great deal of hesitation based on this experience. Fortunately, I got in very early so it's still profitable for me (though there was obviously a substantial opportunity loss).
If they abandoned the RS or reduced the ratio to 1:5 or less, I would turn much more supportive (despite some misgivings that I have now about Stephenson). Let's see what they do.
I wouldn't say that
Probably many held on during the slide in the hope that sanity would prevail and the RS would be abandoned. Hope dwindling but it's approaching zero, so perhaps that's a good thing.
Capital markets are a competition for capital. TDS management has been losing that battle since the RS announcement. We'll see if they can flip the script.
Been accumulating shares as well
Tough stock to buy given the thin float, but the risk/reward is highly favorable at the current price and with the share structure (share cancellations being an added bonus).
I do like that management has shareholder value at the forefront (wish some of my other management teams thought this way). If they deliver, there is massive upside.
GLTA.
Not sure I get your point
Yes, minimizing the bickering on the main page is something that everyone can accept. That said, the investor board needs to get the same information and all shareholder related communication should be disseminated equally. These secretive announcements and discussions, like the investor meeting that the guy from Twitter had, are simply wrong.
Confidence drives valuations in tech
When you lose it, it's hard to win it back unless you take extraordinary action.
Management greed over a few ownership points upfront has been costly. Not sure they understand that, but I hope they figure it out.
Fairly certain IR said a PR this week
But with TDS, who knows if they'll deliver. One can only hope.
Guess they wanted to take the responsibility away from Tommy
That said, if the IR person is just going to say the same thing to everyone via email, posting it on the feed would have made a lot more sense.
Ask "Tommy"
Maybe he knows:)
Sorry, couldn't resist.
Actually, they were indiscriminate and childish
Some arguably deserved to be blocked, but many did not. Couldn't disagree more. Wrong approach to solving their substantial IR problem.
Don't forget the shareholder friendly management team too Pro
You forgot the number one selling point!
Easily $5-$10 if they had done the following
1. No RS (obvious)
2. Had an investor call instead of the secretive call with some guy that has a following on Twitter. Make it no Q&A or just responses to written questions.
3. Given some context to the projections. I certainly hope they come close to hitting the numbers, but they are so far out there in terms of magnitude, no one has taken them seriously.
I could go on, but those simple steps would have put the company on the right track towards a multi-billion dollar market cap.
The loyal shareholders that they alienated and blocked
Can't see the tweet, but thanks. I hope Stephenson enjoys his new digs.
Trust management to deliver for shareholders tomorrow?
Tough question to answer.
With this company and their track record, anything is possible I suppose
That time frame would suggest a merger or acquisition announcement. That's the typical time frame to close an acquisition (after a definitive agreement has been signed), particularly for a public company that has to file documents with the SEC.
That would be my guess, but my level of confidence in predicting what Stephenson will do is very low. The market's faith is obviously very low too.
At this point, the pro forma (ie. for the ridiculous RS) valuation is at least reasonable (cheap if you believe their projections).
It's actually a bigger issue than that
The RS is completely pointless now as the split adjusted price is below minimum listing standards. Their plan has completely backfired, but they do still have time stop the insanity. Issue some more shares to the company to dilute the existing holders down if that's the goal (it certainly is one of the goals). Focus then on building up the market cap and figure out the share structure prior to uplisting (which they aren't close to doing since there's many steps that need to be taken care of).
I've suggested this to the company in many ways. We'll see if they have any common sense or financial savvy.
Seems like a forced seller to me
Selling at these prices smacks of desperation. Hope they get cleaned out today, but I took advantage and added.
Fair point
I think it's safe to say the worst is behind us. The relatively low trading volume on an overall bad day in the market would seem to support that.
Confirmation on Twitter that toxic converts are GONE
We got confirmation on Twitter that the only converts left are ones that strike at $0.24. All of the prior converts are already factored into the share count. That source of overhead resistance, in my view, is basically gone now.
Tough tape for growth stocks right now, but this market cap is so small relative to the market opportunity and quality of management that it should be a multi-bagger from here. Given me 1/4 of Humbl's valuation and I will be quite happy.
$0.09 below recent deal price and Corbett's warrants
Great opportunity to add here as I've been doing. T$NPD is trading well off its highs too, so this isn't company specific other than some note holders perhaps selling in recent days. I strongly believe patience will be handsomely rewarded here.