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No, I'll continue to be disappointed as long as they keep turning every single target into a running joke.
No ... my point is simply that we are getting the absolute snot diluted out of us for 2 Qtrs of cash because this Mgmt team can not hit one single target.
My hope was that a Naz listing would at least reduce the warrant coverage. Was hoping for maybe 1/2 at a higher price. This is another gut punch to investors just like all the others. And what did we actually get here ... another 2 Qtrs of cashflow?
Yea, but this offering looks a lot like the previous ones ...
The company updated their Investor Presentation for the first time since August.
They finally included the 6.9M warrants from the debt conversion into the Capitalization table. One interesting thing I noticed was that despite this addition and an increase of 1.1M outstanding shares and .4M options, the fully diluted total only increased by $4.4M (rather than 6.9 + 1.1 + .4 = 8.4). The net diff of 4M is mostly attributed to the elimination of $4.1M "Escrowed M&A Incentive shares". Not sure what the deal is there ... did they expire?
Also found it noteworthy that they eliminated the slide where they calculated the positive "Operating EBITDA" on 70K assets. hmmmmm
I'm fearing a Friday after Thanksgiving PR. Seems about par for the course for these guys.
OK, that last one really made me laugh ...
Here's another one ...
5/26/20
mCloud Raises C$4 Million of Catalyst Capital in Pre-NASDAQ Offering
https://investor.mcloudcorp.com/press-releases/press-releases-details/2020/MCloud-Raises-C4-Million-of-Catalyst-Capital-in-Pre-NASDAQ-Offering/default.aspx
Well, to be fair, I think they are probably closer now than they were at that point. They hadn't filed the 40F at that point or spent the millions in consulting fees (whatever that actually accomplished).
Well, I stand corrected, the last time we got this headline it said ...
12/2/2019
mCloud to Complete 10:1 Share Consolidation in Preparation for TSX Uplisting & NASDAQ Listing
https://investor.mcloudcorp.com/press-releases/press-releases-details/2019/MCloud-to-Complete-101-Share-Consolidation-in-Preparation-for-TSX-Uplisting--NASDAQ-Listing/default.aspx
So in two years we moved from "Preparation" to "Anticipation".
real progress (albeit with 1/30th the shares) LOL
RS is here,
We all knew it was coming, but not sure why they waited till after the stock lost support and sank 20% to fall significantly below the $75M mrkt cap threshold.
How many times have we heard "in anticipation of Nasdaq listing" from these guys?
https://investor.mcloudcorp.com/press-releases/press-releases-details/2021/mCloud-Announces-Share-Consolidation-in-Anticipation-of-Nasdaq-Listing/default.aspx
Looks like the next support level is at $1.50 USD where the stock bottomed after the Q2 earnings release. That's also the level where the stock broke out from after the Convert news in July. Let's hope that holds.
Yea, I know right, us investors are just so thrilled about the astonishing growth that has seen the q/q revs DECLINE for the past two Qtrs. Not the easiest feat for a co. with a recurring rev model.
Makes me sick.
I think we can assume the worst at this point. If Q3 connections were even decent, wouldn't they have reported the number like they have in prev Qtrs? Esp considering the importance of keeping the sp above that $75M mrkt cap level?
Whatever support we had at that $1.87 USD level appears to have broken. I don't know if it was the Chick N Dip PR or what. Did they think it would actually be encouraging to report the restaurant group had over 100 locations? 100??? Really??? This company needs to be connecting 7k-10K assets a Qtr.
My worry now is that the break of support will signal a no-go on the Naz listing and bring on more selling. Need to get this sp back above that level.
When is the last time this co. gave us some actual positive news to get excited about? Not fluff PR's about partnerships or "targets" but actual concrete positive business news? I can't even remember.
Earnings date still not announced for Q3. Looks like it will be at least a week or two later than normal. Can't help but think this could be related to pending uplisting/financing developments, or maybe it's just the fact the CEO has recently been in S.A.
2020 Q3 Announcement / Release
11/2/2020 / 11/12/2020
2021 Q2 Announcement / Release
8/3/2021 / 8/16/2021
Back below that $75M support area now. You'd figure they'd be doing everything possible to try to goose the SP right now, but all they can give us is a Chick N' Dip with a side of Casa Pasta? Is there really nothing better to report?
I just don't know if they are going to be able to pull off a RS / uplisting / capital raise in a way that doesn't hammer us again. I also don't know how much longer they can hold off. My est was they'd be down to about $2M cash at the end of Q3 (assuming approx 4.7 op burn rate). But perhaps a better way to look at it would be to use an AVG op burn rate of 4.7M for Q2/Q3. After that high Q2 8.1M number, maybe the Q3 burn was closer to $1.3M or so, which would leave them with about 5.4M headed into Q4. The correct number prob lies somewhere in between the 2M - 5.4M.
On a positive note, the Covid data has pretty steadily improved in Alberta since the harsh September.
Hey, if all else fails, at least we know we've got the Chick N' Dip in S.A. LOL
The trading range is narrowing around that $75M mrkt cap as the trading volume dwindles. My interpretation of this price action is that the stock is being supported at this level by those with a vested interest in the uplisting (or just front-runners of the uplisting), and it's being capped to the upside based on the valuation and the company's need to raise additional capital. A TA would probably view the resulting chart as a triangle formation with the potential for a breakout/breakdown out of the triangle in the near future.
Any TA's in the house for comment?
yea, cash collections being down was one of the reasons they gave for the increase in operating cash burn last Q, which was up to 8.15M (wow ... I didn't even remember it being THAT high). So that's why I went w/ 4.7M as my est for Q3. I think we can assume Q2 was a one-off or they'd be out of cash already.
I'll be surprised if we don't hear something within the next couple weeks.
I really don't see how we can go much longer w/o some kind of announcement re financing. The math is pretty simple. They had 6.7M cash on hand at the end of June and they had been burning an avg of approx 4.7M from ops over the prev few qtrs (Qtr 2 burn was even higher). So assuming they got the operating cash burn back to prev recent levels, then that would leave them w/ about 2M at the end of Sep. You factor in another 1.5M burn in Oct and you're under $1M. And with so little connection activity in Q2, it's hard to imagine that Q3 cash flow improved significantly.
So what I'm guessing is going to happen here is that they are going to try to time a new stock offering to coincide with the uplisting. Would be a good way to soften the blow a bit. Let's just hope they can make it till then (the ATB credit facility may help in that regard).
Any thoughts?
Whatever it is, I sure hope these guys have a plan because the clock is ticking.
Just saw the F-10.
Not sure I understand how they can file this before being approved to list on the Naz. What am I missing here?
IR can't provide any business updates themselves that haven't already been made public. Has to come from official disclosures from the co.
Will we ever get any follow-up on ...
the partnership w/ Hubei Huayan in China and all those shopping malls?
the partnership w/ Nybl and those 2,000 oil wells in the middle east and N.A.
the partnership w/ FIDUS and those 5,000 national retail buildings?
how about those 10,000 heat exchangers in W. Canada?
how about all those wind deals in China supposedly coming in late 2nd Qtr/early 3rd Qtr '21?
Remember "pull-forwards"?
How are those Arkansas Govt. buildings coming along?
what about that "very large connected worker deal" in China supposedly going live at the end of 2020/early 2021?
How about that "accelerated activity" in Alberta resulting from the Invest Alberta partnership?
the fugitive gas implementations?
IAQ solutions?
Anything??? ... (other than financings).
Crickets ...
I don't remember it being this quiet since I began following the co. about 2 1/2 years ago. Is this the calm before the storm?
There's been no updates on the business front since that disappointing Conf Call in Aug. Now Q3 is complete which was supposed to be the Qtr it all turned around. Did it?
Brian Kintslinger – Analyst, Alliance Global
Right. I’m wondering mid-August, where are you? Can you provide that?
Russ McMeekin — President, Chief Executive Officer, mCloud Technologies
No, it’s not a published number. Actually, I don’t even have it close to me, but Alberta would
continue to be near zero, so. Where we’ve picked up is some in the U.S. for sure, in New York., none in
California yet, some in Asia, and none yet in the Middle East, but soon in the Middle East. But we’re
really relying on the back half of August, but more importantly September.
Or will this just be another false signal from Mcmeekin, like all the others we've heard since the infamous 6/26/20 Conf Call where he reiterated the 70K connected asset guidance and 70-72M rev target for 2020.
It's been very quiet on the PR front lately. We haven't really gotten any news since mid-July, other than the product enhancement announcements at mCloud Connect. Given that we closed below the US $1.87 level (mrk cap = $75M) yesterday for the first time in almost 3 weeks, perhaps now would be a good time for something. I would like to know how many millions they have spent on this Naz uplisting effort. They need to get this done.
What are the chances we get an RS and uplisting before the next round of financing? Is it even a realistic possibility?
The way I see it, if they were able to get the operating cash burn back down to the levels we saw in Q1 (around 4.8M) then that would leave them with about 1.7M at the end of the current Qtr. They also have the credit facility to work with. I don't see them being able to go too far into Q4 w/o another raise barring some new developments.
The other question is, how big of an impact would the uplisting have on their ability to raise money? Of course, the hope would be a pop in share price to offset some of the dilution, but could a Naz listing possibly also lower or eliminate the need for warrants?
Any other thoughts on this?
Thought the moderator did a nice job with the whole thing. I give them credit for trying to create an annual marketing event like this at least. Who knows what it could turn into some day. I was disappointed with the "Customer Experience" session. Was looking for something more than a 10 min pre-recorded infomercial.
I'm very concerned with the Covid situation in Alberta as well. Every time I check the stats they get worse and worse. Hospitalizations are up almost 9x since late July, despite pretty strong vax rates. If mCloud couldn't connect from July 1 - Aug 15, I'm not sure how things could have improved since. Maybe at the next CC, Russ can explain to us how 31K can attend a Stampeeders game in Calgary, but he can't get a couple techs into an O&G facility.
Despite all this, the stock has remained relatively strong (knock on wood). Closed yesterday above the $75M USD and $100M CAD mrkt cap levels. Not much volume to get excited about though, but there seems to be at least some support. Not sure why that is, maybe some front-running of the potential uplisting or it could simply be a single fund slowly building a position. Who knows, it doesn't take much to move this tiny stock. During that prev mentioned "Customer Experience" session, the woman from Cadence Financial did say that they were investors in the company.
p.s. we at least know who is NOT supporting the stock. Insiders. No purchases in over a year.
The fact that it's all virtual will limit the costs some I would imagine, but I doubt the two keynote speakers are gratis. What's another couple hundred grand when you can just issue some more shares and warrants, eh?
I've actually been a bit surprised w/ how well the stock has held up so far post-earnings. There are a few key levels above (not speaking from a chart perspective). First is the USD $1.87 level which is the $75M USD market cap required for Nasdaq listing. Second is the CAD $2.50 level which is the C$100M market cap required for Institutional investments in Canada. Third is the CAD $2.85 / USD $2.29 level which puts approx CAD $38M in warrants into play. If they can get this stock above that C$2.85 level it puts all 3 into play and it's possible we could start building a little upward momentum in the share price as a result.
BUT, I think it's going to take some positive news flow to get it there. We need SOMETHING to get investors excited about this stock, but the co. just hasn't been able to deliver that for over a year now. Instead we've gotten a bunch of partnerships, "backlog" talk and missed targets. Some assurance that connection activity in Alberta has begun to pickup would be a good start. Whatever it's going to take, let's hope it happens soon, because we can all do the math on the cash flow.
Maybe they blow us away at mCloud Clonnect 2021! (One can dream)
Yep, that is the most important thing I'm trying to get a handle on. Six weeks fully reopened and apparently nothing as of the CC. The only reasonable explanation I would have is that you should probably expect some bit of lag time between the reopening and implementations beginning to kick in. It's not like we should expect it to be the very first order of business for these O&G companies. But then again, it's not like they haven't been operational this whole time either. It's definitely concerning, esp with conditions worsening in the Province.
Some follow-ups on my prev posts based on a conversation I had with Andrews ...
Regarding changes to the Leadership page, he confirmed that O'Neil is still with the co. As for the others, he didn't confirm nor deny (I think a couple of them were based outside the US.)
I also asked him about that "sweetheart" deal given to the bondholders. It had been my theory that the convert holders forced that deal by hammering the share price, but that was never supported by the short interest. Andrews told me that the original bond agreement had some type of "Look-back" clause that entitled the bondholders to the same deal given in any subsequent offering. So when the secondary was announced in April granting the warrants at $2.85, that basically triggered the same offering to the purchasers of those debentures. So I had that wrong.
I also asked about the share count, because I had some confusion re the 40.1 number that didn't change after the conversion shares were issued. He indicated that those shares had already been included in the total at the time the debentures were issued. However, I still think there is a big error w/ the warrant total. The presentation lists 9M warrants at $15.2M, but the April Secondary and recent debenture conversion totaled 13.3M warrants and approx $37.9M alone.
Anyway, thought I'd pass that info along. Had a bunch of other questions re the cash situation and the the Covid situation in Alberta and poor connection pace, but most went unanswered or were left as follow-ups.
I looked into the Naz listing requirements, and based on McMeekin's prev comments I heard re the requirement of a $75M market cap, it seems that they are attempting to list on the Nasdaq Global Market tier under the Market Value Std (link below). This would also require a $4 sh price (which of course could be accomplished via RS). They were well over the mrkt cap threshold prior to that abomination of an earnings report. There's also some confusion over the existing share count. They have 40.1M existing sh listed on both the 6/10 and 8/16 presentations. Not sure how that's possible when they issued 6.4M in between to take out the debentures. Either way they are back under the threshold.
The cash burn in Q2 was much worse than I thought it would be. Just unbelievable that it is headed back in the wrong direction. Prof & Consulting fees back to $2.7M LOL, remember when those were going to "roll-off" late last year? What a joke. Zero accountability with these guys. Sal and Benefits also up $800k in the Qtr. And I have no clue what's going on w/ the receivables. Not a "collectibility" issue according to Schutz, but they are apparently just "choosing" not to pay on-time, Say what?
I agree about the ATB facility. McMeekin said it was "designed" to scale up to take out that $23M debenture. We're supposed to believe that after the BS he's fed us re financing over the past year. Really? The cash situation headed into 4th Qtr and 2022 is very concerning to me, esp with positive cash flow still not close to achieved (and I'm not talking about that "operating EBITDA" nonsense that excludes $2.7M in Prof & Consulting fees. They haven't been able to prove those costs are non-recurring yet. In fact, they are now escalating.)
I could go on for 10K more words, but nobody is reading anyway.
https://listingcenter.nasdaq.com/assets/initialguide.pdf
Yea, but if you believe McMeekin (which I don't anymore) there is no problem in generating the business, just with the logistical challenges of connecting. It's very possible that this is nothing more than a change to the Leadership page on the website, and they're all still working at mCloud. I hope that's the case. I'm assuming that this is something Andrews should be able to answer. I don't think info re who *hasn't* left the co. would be privileged.
Should also mention that I was originally alerted to this by the same dude on the Yahoo board who is the one who has posted about the "missed payrolls" in the past. He seemingly has an axe to grind with the company for some reason. But I am certain those 4 Presidents were previously on the website, so it's not just a matter of him making this up.
That's the page I'm referring to. There are 4 executives that have been removed. If you cross-ref with the list below, you'll see the following "Presidents" are missing from the website: O'neil, Kipoor, Weinerth and Zhao.
I guess it's possible they are still with the co. and removed from the website for some other reason (re-org or something) but that seems strange. On the other hand, could 4 Presidents really leave the company w/o some kind of announcement?
I was able to find 3 of the 4's LinkedIn profiles which still indicate they are with the Co., for whatever that's worth.
https://www.morningstar.com/stocks/xtsx/mcld/executive
Tick and Hank,
Looks like we're about the last 3 remaining ... even Rod and Prime seem to be gone. Wanted to get your guys thoughts on the updated Org chart on the co. website. Unless there was some kind of mistake, it looks like there was a major over-haul. Looks like 4 executives are out, including O'Neill who was the one heading up the utility partnerships. Perhaps it's just a mistake on the site, but I wouldn't count on it.
Why were they not connecting their "backlog" in Alberta over the past 6 weeks while the Province was opened back up? That was probably the most worrisome thing I read or heard, which is sayn' something after that debacle.
The harsh reality for shareholders is that the company is actually being valued significantly higher today than it was prior to the Kanepi deal despite the destruction in share price. Dilution is a @%#@#%!
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