Thoughts on the reverse split:
I've been tied up the past couple of days and completely missed the posting of the AGM voting items on SEDAR. After reading about the reverse split (and the way they're going about doing it), I feel as if I finally see the light at the end of what has been a very, very, very long tunnel for this invesment. One, that IMHO, could be very, very good for longs who play it right.
Think about it....there is no way that we can raise any more serious money at these levels. A $70M raise at a quarter per share is going to completely blow all of us out of the water through dilution (who among you wants another 280M shares on top of the 188M that we already have?). Folks on this board keeping talking about non-dilutive financing, which doesn't exist....either you're selling shares to new shareholders, or you're taking on debt that either weighs down the company or converts to dilutive shares later.
The *only* way forward is to uplist to a major exchange where we can finally have access to the book of investors that Transenterix has benefited from for the past few years. And the only way to get on an exchange like Nasdaq is to bring the PPS in line with their listing requirements through an RS. There's no way we're going to get there in the short term organically (the company would need a market cap north of $750M to achieve the $4 per share for a Nasdaq upllist...not happening).
The Board could have moved to unilaterally authorize the reverse split. But they didn't. They chose to let the company live or die by the shareholders decision to approve or reject the reverse split. I think that move is brilliant and shrewd on their part....letting a shareholder participate in the decision making process for the reverse split makes them psychologically less likely to jump ship post-reverse-split (after all, they approved it!). And, with a ton of catalyst milestones lined up over the next year, timing the reverse split, the upllist, and a major milestone could send this sock soaring finally.
I have seen SPORT and know with my own eyes that it works, and that the only thing that's keeping it from being the first major competitor to daVinci is the funding to reach 510(k) and a couple of key patents that are getting close to approval. McNally coming on board has so far proved to be extremely positive (we're getting out in front of real investors, hitting milestones, hiring people who know what they're doing, etc), and I think that Titan under McNally is in a position to use the share consolidation in a positive way to help make the company stronger, not to put lipstick on a pig like Transenterix tried to do a couple years back.
I plan to approve the share consolidation with my votes, and I really hope other shareholders will do their homework and due their own due diligence to see for themselves why the RS in this case is the best way forward for the company.
(In full disclosure, this is a long play for me, I've never shorted this stock, and you should do your *own* research to decide for yourself how to vote)
