I for one have voted heavily FOR the authorized. Various reasons, amongst which
1. They have telegraphed the main reason for its existence in the alliance with Morf3D/Jaguar which I think is an exceptional opportunity to capture a significant revenue producing entity that the market is wanting (ie an ecosystem to understand and grow 3D printing initiatives). I think it is the right alliance at the right time in the right industry and can hit the ground running as far as revenues are concerned. It’s also a very scalable ecosystem and the cross customer benefits cover a huge proportion of AM early movers making the sum definitely greater than its parts. An 8 week turnaround start to finish for a company that wants to test out AM and then develop their strategy is a very enticing prospect and will be well in demand.
2. They have some cash. The idea that they would authorize the increase then just turn it into cash for no particular reason and squander it, well, they have money in the bank right now, they have proven to be frugal with their spending. It just doesn’t make sense, except to a certain narrative who spells the end of the world is nigh. So logically this is unlikely, certainly in terms of the whole authorized.
3. Can be a tool against takeovers
I think Mark Cola and Sigma did better than many people give them credit for in what was challenging circumstances. Without a doubt the industry timeframe slid heavily to the right. GE who I strongly believe is still very much involved in the Sigma story has had a ‘delayed’ year with a 2 month hold up and refocus in Predix as well as integrating ARCAM and CL strategy. US Naval project was delayed etc etc. I am encouraged to see the company’s recent moves and it is clear they are restrategising. The alternative is sitting still and in my mind that is not an option I want at this stage with the potential opportunity on the table. I didn’t invest in this company to see it sit still. I was and am well aware that the dice could have landed this way in an emerging company in an emerging technology and have invested accordingly, on various milestones. I am in this because I really think it’s an important technology in a market that will become ubiquitous over the next generation. That hasn’t changed and I don’t want Sigma to sit still under a tiny authorized when they could use it to noticeably increase their presence in the market as it grows. Having more shares authorized doesn’t make it dilutive. Issuing them does. Any company needs a certain amount of shares authorized for general working purpose and Sigma is in a position where it would need to issue more anyways. I believe this raise will bring an important new growth channel for Sigma and I am all in.
