September should prove to be an interesting month.
By the end of this week the NASDAQ approval team should have completed their initial review of the SGLB request for listing. They will return questions to SGLB corporate for responses. Then SGLB will provide the responses. Then we should see the NASDAQ answer for the listing request by the second week of September.
Meanwhile, the S1 is being reviewed by the SEC and should come in approved about the same time.
But already, the fun has started. Someone is going to be spending a lot of money buying SGLB stock; current primary shareholders, the company share buyback fund, and or others. The NASDAQ Capital Market tier requires either a sustained bid minimum of $4.00, or a share price close of $3.00.
Page 56 of the S1, near the bottom, I think I am recalling, states that the SGLB employees and directors are subject to a lock-up period for the offering of 90 days. However, the underwriting house and associates are explicitly stated as not being subject to the lock-up period in any way. My guess is that the underwriters and associates are the ones who put up the nearly 3% of the entire outstanding share count for sale on the ask yesterday at $3.00.
If the underwriters are only interested in getting the offering completed for the max cash raise, then they are not necessarily also obligated to support the up-list effort. Someway SGLB is going to have to insure that at least the close price becomes and remains $3.00 at a minimum.
There are a lot of moving parts here. With the wording in the S1 for the warrants covering three separation trigger events, and the 5 year anniversary expiration date, it seems that they are being looked at by the financial guys as a form of options for SGLB. The underwriting firms also have the option to buy more units if the demand is high, so that SGLB can take advantage of the cash available. It is sure going to be interesting to see how it all goes. The next few months are going to be busy like we haven't seen it before.
With the warrants having a 5 year expiration date, the prospect of significant gains with ownership of them is probably high. I think we all expect that within 5 years SGLB will be a much more highly profitable company. I am thinking I will hold off on further share purchases now. I am probably going to go after the warrants.
All the best,
Silversmith
