NW, here's a ringer ...
you mentioned the notion of the shelf serving into a strategic investment in order to shore up Wave's credibility and overcome what seems to me to be in Solms' opinion the barrier to sales. i think Solms experience is with large credible companies, he looked at Wave's products, looked at the market and was confident he could stage a turnaround and overestimated Wave's credibility or underestimated the consequences of weak credibility.
Enter WYY.
Much to the dismay of some WYY investors they just printed north of $10m in equity. In their CC they site all sorts of notions about opportunities and so on that they feel they need the capital to realize.
So, did WYY just sell a bunch of shares in anticipation of buying a bunch of WAVX.
Nah. the reason being WYY flirts around at cfbe, swapping cash for Wave equity unless they're sure, lock solid sure, they could sell a lot of Wave product as a direct consequence of the investment (they have VSC2 customers in hand that won't close because of Wave's balance sheet e.g.) and if any of this was so then presumably Wave would have to cut special terms to WYY remuneration for Wave product sales.
They could perhaps think that they could take a 10% position ($5m) sell a bunch of Wave product where they get a bigger cut of the pie, WAVX equity recovers, they can dispose of WAVX as they see fit, Wave looks credible over time, they maintain their preferential pricing of Wave products, bag a cap gain on any WAVX equity sales and so on.
Nah.
The above content is my opinion.
