TheDirectory.com Inc (SEEK)

[JohnWilliams]

I agree with you on the part of your statement that says "I must add that dilution to pay off debt is not necessarily a bad thing if company is growing".

I must add that dilution to pay off debt is not necessarily a bad thing if company is growing

Not the case here at SEEK at all

In addition I will add that there was some dilution in previous months because of the deal with TCA Global Fund.

OCTOBER 2013
TheDirectory.com also announced today that it has secured a $5 Million credit facility from TCA Global Fund. The initial draw was $1.3 million in cash allowing TheDirectory.com to close its purchase.

The acquired assets boost 1580 locally targeted city guides that collectively generate over 5 million unique users per month. The acquired technology will be integrated into TheDirectory.com network. As part of the transaction TheDirectory.com also acquired the trademark to the term "Hyper Local."

TheDirectory.com founder and CEO Scott Gallagher stated, "I'm very pleased to announce today's news to our stockholders, we've added tremendous value to our Company. Both the acquisition and the financing agreements that closed yesterday are game changing events for us. The asset purchase places TheDirectory.com on track to generate full year revenues in the range of $4.5 to $6 Million for 2014 with net income in the range of $1.4 to $2 Million. Our network reach now extends beyond 5 million unique users per month in an array of verticals. The funding facility essentially provides us with the financial backing we've been lacking over the past few years in order to facilitate our build, buy or partner growth strategy." Gallagher continued, "We'll be hosting an investor conference call shortly to discuss today's events. We'll release the details for the call in the next week.


The company IS growing. We now have 7 million unique users per month

IMO the dilution is over. Take a look at the chart.