Sigma Labs Inc (SASI)

[silversmith]

WOW.

I am not sure yet what I think about the shelf offering. It is certainly complex, and can be a double edged sword. But it is so many times used in anticipation of large growth. Kind of like an actionable item before a window closes. For instance, and I certainly don't know that this is the case for SGLB, the recent JOBS Act designates certain advantages for what are termed 'emerging high growth companies'. One limiting factor for this designation is that your market value has to be less than $750 million. If SGLB sees that they are about to lose their emerging growth company status because they expect to be a greater than $750 million company soon, then that can explain this move. It certainly does allow for a source of money if they see really big ramp up demands coming. There are several scenarios that are all very bullishly positive for possible reasons for this move. It is all growth related.

The other edge of the sword is the case where you have a selfishly minded administration that doesn't care about the common shares pool, and dilution is the intent. Mark Cola and the company have not exhibited this behavior at all historically. I find it very hard to believe that this is a case of an immoral administration. I think, at first consideration of the matter, that Cola and gang see high growth coming. I need to think about this some more for sure.

All the best,
Siversmith