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Went by Brentwood store today...
Its Carebourn Capital & CEO Chip buying aged debt; TA said they have all of the reserve and are funding company in exchange for aged debt. Would be great if mgmt would give an update or at least stop selling aged for a bit to let stock breath and then at least sell aged debt with higher conversion price. BVTK did the same thing and continue to do it at expense of shareholders (guess that is what you get for buying stop sign).
I do see big things ahead once co get audits done.
What is your source? Where is 13G?
What did we pay for IR?
Where is 8K?
Why this group?
Good news but 7m seems like too massive a number to take seriously.
True story
Seems like an awful lot of work for no revenue - why can't their SAAS drive any revenue? I can't imagine they can continue to burn cash like this much longer.
FUSZ can only sell shares to KODIAK when the S1 is effective.
Going to put my head out for a moment to provide some disclosure for some of the news guys and speculators looking for answers:
$2m Equity, available upon effectiveness of S1: Rory can use as needed, he can ask for $25,000 or $2m and sell stock at a 20% discount to the VWAP (Kodiak cost basis); access to this capital expires in two years. My guess is he uses to keep up with monthly burn ($100k) and retire all his third-party debt ($500k) until the stock is above .30 (my guess).
$1m Warrants: Kodiak can exercise at their leisure for five years anytime after April 2018; the more they exercise the more capital Rory receives.
$220k Note: non-convertible and due in April 2018.
Ideally, company is able to utilize their team and relationships to announce a revenue event triggering an uptick, clean balance sheet, set aside capital for burn, and the rest is history.
CONVENANT: I don't believe Kodiak can own more than 4.9% of FUSZ at any point in time; hypothetically, they get in at .30, exit at .40, and do it all over again.
Hello Padowan.
Settling in here in Asia and trying to navigate this board to make sure I reply to everyone (If I missed someone please let me know).
My exit via Kodiak in 2009 is no secret. It was disclosed in a previous post on ihub, referenced somewhere in my bio, and I mentioned the other day on this board I am their biggest fan (among other PIPE funds) and follow the deals that their portfolio cos announces - quite successfully I might add. I guess (news to me) that I am on their website somewhere with a quote (albeit paraphrased from my praise to them at some point and endorsed by me).
When I dealt with them their fund was comprised of other heavy hitters that have since moved on (or retired?) and some of the other members at the time of my interaction have since moved into mgmt roles at Kodiak.
I have been following their deals that are announced (from what I understand they roam in the shadows like most funds yet some cos choose to put out their own PR) ever since. You can discount my two cents all you want however you should understand I am your lowest hanging fruit - I understand the markets and the funds behind them. Let me give you a better analysis:
I bought a watch the other day. I know nothing about watches but hear Rolex is better than Timex. A friend introduced me to a guy that he said knows watches to assist me with making the right choice. I told him I liked a particular watch and he said "that is one of my favorites too; I used to work for Rolex and can vouch its best of breed."
I appreciated his advice and bought watch; based on your reaction, I assume you would have bought the Timex.
BTW, they coincidentally reached out to me this week; when I get back to them and chat I will do my best to get some feedback on their investment thesis for FUSZ. What would you like to know?
Do I believe it makes someone look bad they win lawsuits or are a party to lawsuit? No, I do not believe a fund suing someone on behalf of their investors is a bad thing; I believe its their fiduciary obligation.
Looks like Kodiak sued the company and won, no?
Sorry to the stacking of replies but I thought i read everything; on a plane and trying to navigate on phone ha sorry.
So...like I said, I am on a plane and have some time so lets have some fun.
HiSpeed you seem to have a strong opinion re fusz, or more specifically Kodiak. I personally don't have one other than i follow funds around and do my best to time their momentum.
In fact, this website is most helpful in me doing so; I have various logins that I use for each fund to help keep me organized when doing diligence. Point is, I am well qualified (self pat on back) to have some fun with you or at least get you to a point where you help me by providing facts that I am not privy to, ultimately increasing my knowledge base for future endeavors.
That said, can you please provide us all with an example of what you are afraid of? I speak for the group, I am sure, when I say we would all like to know what we are missing that you so clearly seem to understand.
Their (Kodiak) MoviePass deal doesn't seem to be hurting too bad this month ha lol; accretive dilution is not a bad thing - in fact id argue its the most effective and efficient means of raising capital.
Again, I'm confused, when is an equity offering not dilutive?
Sorry, I was trying to reply to OGINVU post; they wrote:
"Kodiak is toxic to penny stocks....they will short their own positions for gain and have tanked many ...good luck here people..."
I was hoping OGINVU could share with me/us how these stocks are shorted, where we all can participate for stocks that should be shorted, and perhaps some examples of how/where it has been done (from Kodiak/others/or OGINVU).
Ok so:
- just read docs and Kodiak cant short
- assuming they follow your suspicions in short they must have offshore account right?
- if so, wont shares from nfusz transaction be delivered to offshore to confirm such suspicion?
- why would a fund risk this; odds seem ridiculously against them if stock ticks up and they are exposed to standard short rates, right?
Thanks for info - as someone new to space I didn't realize i could short penny stocks - where can this be done as it seems like a great strategy for 99% of the companies I look at?
I dont spend a lot of time on these boards; I use them to supplement my own due diligence as every now and then i find some useful content. However, the trend i see on all boards is the way dilution is perceived.
ALL equity offerings, at any stage, are dilutive. A better metric to watch is EPS or in earlier stage deals, RPS.
Investors, like yourself, have a cost basis and typically do not sell below it.
One characteristic of Kodiak deal that jumps out is the potential accretive structure or "less dilutive" optionality the co has; they can wake up on any given day and take advantage of a rising market ie news send stock to .30 and they raise cash at 20% discount ie $0.24 vs having sold prior to release at say .08.
Point is, all start ups need $$$; id rather a co sell equity in a deal they control timing vs doing a note that is convertible at anytime outside of cos control ie company can control dilution by deciding if and when they want to sell and if s better option comes along they just pay a 5% option premium.
My two cents
Good info. Much appreciated.
Got in at .10 and looking to add more. I hope to meet with company as soon as I see some catalyst supporting my thesis.
Interesting. Thank you.
I don't see a note in the filings regarding the Kodiak financing though. What am I missing?
Also, the links you provided seem to reference a Magna fund. Is that the same as fund as Kodiak?
Lastly, these notes in the links you provide appear to allow for company to pay back and they only allow conversion if not paid back, right?
I looked into Kodiak when i first read about deal and appears they are primarily equity investor in private cannabis cos and very few pubcos. Do you have specifics?
Look into placement tracker (part of sagient research) - besides otcmarkets.com its the one source that seems to provide accurate date on small caps
How do you mean? Did they lend co money?
I follow a multitude of funds "smart money" deals on on placement tracker; i pay extra close attention to ones in my backyard in NY & CA. You?
Looks like ENDV lost - on a positive note, if the company uses the bridge note to get to revenue and stock runs to .30 then it appears to be the most accretive method of raising capital i can think of - i imagine its what zmgx just did.
Thanks for the input however with such a strong position can you at least provide specifics. As an investor in nfusz, and one with great research.capabilities, I only see Kodiak being in two lawsuits since they launched their fund family 10 years ago and they have filed 50+ 13D/G filings stating long-term ownership of equity.
It appears they were the plaintiff in both cases and won them both - receiving capital from both defendants; one just as recently as last week (honestly, I dont't care either way but just stating facts - seems like every time I open WSJ some hedge fund is in a lawsuit protecting their fiduciaries).
Also, it appears one of their partners, Ryan Hodson, is also a founding partner of Sway Ventures (a Silicon Valley VC) and seems to be utilizing his expertise in Silicon Valley for building Kodiak's technology portfolio. From investorshub tools it looks like they have invested in handful of IT cos the last 30 days (ABHI, BTCS, DGTW, FTWS, MGTI, PNTV, and I read somewhere Herb).
Moreover, most importantly, nfusz has the capital they need to achieve top line projections and then some. Here is to a great fourth quarter. Lets make it happen!
This doesn't even warrant a response but come on guy; you wanna put your money where you mouth is?
If i am right you can't post for 30 days and if I'm wrong I won't post for 30 days. Deal?
I'd credit it to me being better at these things than you are; VStock is highly impressionable
I hear there is an investor lawsuit on the horizon; I called the TA to check on dilution and get outstanding share count and they informed me the company fired them last week.
They continued on to say that there are many disgruntled investors (that happen to be attorneys) that are about to bring down the hammer. Glad I'm almost out.
Thank you for providing the exercise price - are the Warrants cashless? If not, the Investor would but nuts to pay to exercise a majority of them and wait 6 months for 144.
One more thing:
As an investor I look to stay ahead of the curve / right now I am looking at cryptocurrency (bitcoin, etc), Augmented Reality, Virtual Reality, Drones, and Cannabis (among a few others that I am keeping to myself).
I have visited multiple grows (indoor/outdoor, cultivation, etc.) and dispensaries in ME, NH, MA, MD, NV, AZ, CA, and WA (OR seems to rub me the wrong way - gotta trust your gut - all about making money but if it doesn't feel right and you aren't having fun then I don't recommend doing it - think "your favorite team is playing the Patriots in the SuperBowl and you bet the Patriots only to see your favorite team win and lose your bet).
That said, there are very few pubcos in the USA that have ability to make money off of growing or selling of the plant itself. PNTV is one of those. We can get in on the ground floor here. Yes, I know we are investing here at a $25m valuation pre revenue but that's the price you pay for transparency via public filings and audits. No need to refi you house here but if you want to risk a couple bucks (beer money for mo of September) it is def one of the few pure plays out there.
PS - the media side of the business is huge, as is the accelerator strategy as a pubco, but I'll wait to comment on that at a later date.
All -
I am an active investor; I am in everything from pizza parlors to microcaps to actively trading secondaries and IPOS via the syndicate calendar. As a result, I am quite knowledgable when it comes evaluating investments and to the public markets.
However, I am not very active on these boards. Though, when I am interested in a name a do take a moment to review over a morning cup of coffee or a beer on the patio.
I don't plan to take a left-side or right-side of a debate but I find it necessary to understand everyones point of view and provide clarity, as needed, by providing simple elementary facts.
First, DILUTION seems to be the trend on this board. As I noted in my previous post, anytime a company issues a share they dilute a stock yet it should not be the sole focus when deciding to invest or exit a position. For example, if a company has $0 earnings but raises $5m via equity offering (i.e. issue common stock) to ramp up revenue via marketing, distribution, etc and ultimately create earnings, their Earnings Per Share (EPS) by default increases.
If a share price is falling because an investor, or in some instances a consultant, service provider, etc, has no cost basis it can certainly be unsettling. In this case, the investor appears to have a cost basis and the company appears to control the timing, amount, etc. and at the end of the day receive cash for their business in exchange for selling equity. If anything, it seems similar to the most prevalent, effective, and efficient means of raising capital utilized by the likes of every life sciences company on the nasdaq in that of the At-The-Market offering. In fact, I just read BOA raised $15B last month off of a shelf - certainly dilutive by definition but if they increase their EPS as a result there is no arguement.
Next, a start-ups biggest problem is having ample cash to run the business. If they don't raise capital (primarily via equity family/friends/seed/Series A) there is no company. As a shareholder, we want them to raise cash.
Lastly, 500,000 shares seems to be a big talking point as well. These shares appear to be restricted for at least 6 months (unless registered), are for the $25,000 Kodiak agreed to pay for the S1, and half will be returned if the company walks-away for whatever reason. It is a non-issue.
Also, I keep reading on various message boards about "toxic deals" - can someone explain to me what this is?
At some point this week, if I have a moment, I may offer my number to a few of the most active guys on this board to talk shop - Toxic Avenger, Alan Brochstein, and a couple others seem to have a very strong view and I would like to further understand why they believe what they do. I don't know anymore than the rest of you (hoping Q this week provides some insight on Vegas going recreational and its effect on the bottom line in the coming months) but want to know why betting on one of the more active names in the space (especially at these prices) seems so wrong*.
*if the company has 250m out x .07 = $17m and they don't plan to DILUTE until .18 (.18 x 330m = $50m) it seems like a pretty accretive transaction to me; if they are able to raise cash pre-earnings at those levels and utilize the money to grow their earnings its a no brainer. You have to be comfortable with management and their ability to execute if and when they can raise capital to do so - I am in many names and the biggest problem I see with them all is mgmt ability to exucute - they all seem pretty good at raising cash however after they spend it on the expenses of being public they seem to have very little left over to run their business and even produce a top line. Given that PNTV has an active license in NV I believe they are well ahead of the game especially if they are able to raise $5m+ between the equity and warrants.
Now this is well said - apparently the investor didn't commit a fixed $$$ amount but rather a firm commitment to purchase 37.5m shares (plus another 37.5m warrants), the company would be best to wait until the stock reaches .60. Baby steps, lets see what the S1 looks like and further evaluate based on stock price at that point.
BTW, I have seen similar deals in the cannabis space where a structured deal gave the investor downside protection but left it open to company to utilize the accretive nature of the deal - MJTK MSRT OWCP.
I haven't had a chance to read all of these post however lets look at the obvious:
- cost basis is at a minimum of .18 and a maximum of .50
- all equity transactions are dilutive - to speak of dilution is not the best way to analyze a transaction (although certainly one of many variables)
- for example, the stock has been cut in half organically vs the result of additional shares hitting the market via an equity offering or a note converting; if and when the company does sell equity, unless the investor wants to be under water, they will not sell below .18.
Time will tell; until then, speculation seems like a waste - lets stick to the facts (dilution below .18 is certainly not one of them)
Thank you for the heads up - however couple questions:
1 - the financing has a cost basis of .10 (approx $4m market cap) right?
2 - I am new to investing in small caps, can you send me some names of other companies I can research for in estment purposes that are able to raise, the inevitable need for, capital without diluting?
Thank you.
I went by MYDX offices this weekend and it appears the company has turned over the lease for the entire building to an accelerator that has been renting out the second floor for the last year (I tried finding this in the Q but no luck).
I was told MYDX is now subleasing a small office from the accelerator and that the only person in the office is the CEO but he hasn't been around much.
The concerning part is they said the lab and warehouse are no longer occupied by MYDX. Does anyone know if they moved and perhaps I have overlooked? Ty.
Yes you are correct - they aren't sellers as they will be required to file 13G/A - I think their increased commitment to company shows they are in it for long hall
can't finance a venture stage company without dilution; company needs cash for operations and acquisitions. I'm sure Tew knows what he is doing and plans to sell more equity only at higher prices - he has ability here to control timing and price. let er ride!
I don't believe this is accurate -
If you look at the date of the information provided in the 13G it is from first week of February when another 8K was filed that Kodiak had converted last of notes and invested $150K approx for 36m shares.
I am assuming that they bought equity and converted debt and they are out of position by now.
Where do you see this?