I see it differently. I'll give you what I think is a very balanced and comprehensive view, coming from someone who is long the stock.
RAD has a developed product, but they are just beginning to deploy them. It's very different from development stage where they are just building one single robot and refining it. They still burn through a lot of cash while in R&D, no doubt, but there are differences. Right now they need money to fulfill the orders because they need to pass payments along to SMP and other suppliers in order to create the product that they have obligations to deliver. The more orders they have, the more money they need to fulfill the orders. I'm no accountant, or even a business expert for that matter, but I would assume they need funds for what is referred to as COGS and they have no operating cash flow because there is no revenue and they are just getting the ball rolling. It's like a car that needs an electric starter for a few seconds, then it can drive a thousand miles on its own (with enough gas, of course). They need money in order to proceed with product deployment so they can get those revenues. I don't know if the revenues will show up immediately due to common business practices like Net 30 or similar, but if they are leasing robots like they say they are, we will eventually see the revenues in the financials of the publicly reporting OMVS. I guess it's mostly to satisfy my curiosity about financials for RAD when I say I want to see their numbers. As I understand it, RAD is wholly owned by Steve. Maybe he's used his personal capital to fully fund it, or maybe he has friends and family who helped. I don't know. But, I guess we'll see what RAD's numbers are if this deal closes.
As far as the "why" of joining OMVS. Who here makes perfect decisions in life, in business, in investing, whatever? An opportunity came across for Steve and he took it. Did he shop around? I don't know. Could he have found a better deal? Maybe he could have, but it would have taken more time. Everything is a trade. My guess is he traded a bit of OMVS's baggage for the benefit of expediency. Could it be that nobody else was interested in backing RAD? Sure. But maybe it was just that he wanted to proceed now and not later.
As far as the hyperbole, nobody can argue that explosive stock growth never happens. It's rare, but it does happen. I've even tried to knock down some of those estimates a few notches here on the board, and I am invested here. I've seen explosive stocks go bad. See my earlier post about selling at least some of your stock if it pops. We are all basing our optimism on what RAD is telling us, which is that they already have orders for 62 robots totaling $6.2 million in (future) revenues. We have seen them provide updates adjusting that number as it grew to be 62. It looks like there is momentum there. Yes, it comes down to whether you trust that what they are telling you is true. With all the PRs, social media exposure and the relationships they have publicized with companies like Nvidia, Romeo, Verizon, Microsoft, etc, I think there is plenty of evidence against them if they are telling us all about all of those connections, and the orders they have lined up, and it all turns out to be B.S.
And if the merger deal falls through at the last minute? Yeah, absolutely people should know ahead of time that this is all about RAD and not OMVS. They should know that OMVS is nothing without RAD. Invest with your head, not over it. But, from what Steve is telling us everything is on track. Again, it's how much you trust a stranger with your money. Always leave open the possibility for the worst to happen. I have not invested my life savings in this, and you don't have to, and you can still potentially make a lot of money. I don't know if my calculations are correct, but I figured in an earlier post that the maximum remaining dilution on this is about 68 million more shares, or around ~155 million shares total. I hope I'm right about that (QTRADERQ, where are you?!). Bux is confident that some or all of the remaining debt is in friendly hands, meaning investors now holding the debt are in for the long haul and won't dump their shares from convertible notes for the instant profit. Of course there is always risk. We'll see how it all turns out.
Oh, and as usual, it's all just my opinion.
AI
