Sphere 3D Corp. (ANY)

[Hugodrax]

Translating today's PR:


The "real" news today is that they other non-binding "proposal" they announced OVER THREE MONTHS ago isn't even at the point where they would hire a financial advisor.


Combined with utter silence on the "$25 million non binding term sheet" the market is naturally selling off. The company is out of money again (on my math) in a small number of weeks, nothing happens over the holidays. They Cyrus bridge loan has to start being paid back in Jan. Opus covenants might be a factor.

Net net the selloff is rational to me. A quasi-confirmation (IMHO) that there is no immediate cash infusion from an asset sale, and about the 300th "boy who cried wolf" PR from Eric Kelly and crew.

Now I'm asking myself WHY would they put this out. They don't need to PR "non-binding proposals". The only things I can think of off the top of my head are:

1) A desperate attempt to pump the shares or keep them above 30 cents so they don't get booted from NASDAQ next month.

2) A lame negotiating tactic - perhaps the first "proposal" was so stinky they are trying to create the aura of a competitive process to try to get the vultures to pay up a bit more.

3) Worry about direct liability given they had that September announcement out there lingering with no update.

4) There's also a line in the PR about "these and other potential transactions". They might be trying to advertise to the world that they are open to being bought.

That "other transactions" line is an indication of extraordinary desperation in my opinion. Saying you are open to "other transactions" when your stock is down 98.7% or so and your market cap is $15M is the kind of stuff companies put out to cover their behinds before filing for bankruptcy - "we tried, sorry!" IMHO....


If I were looking at buying some scraps here or the company, You wouldn't likely pay anywhere close to the outstanding debt. And I'd probably want an asset deal so I'm not left with massive liabilities like Eric Kelly's severance and all the European employees from the Tandberg days that are super costly to fire.


OMG.....


IMHO....