My analysis on this 8K message delivered:
Fact:
1. INVT got $2.6M now and may get up to $4M cash from TCA
2. Current INVT stock market value: 1.5M (.075/share)
Question 1:
If INVT stock value stays at this level, How much shares should INVT issue to pay back the loan+interest?
Answer: Infinity to death and could not pay back.
Question 2: Is TCA stupid enough to loan cash to such a company will not pay back the loan.
Answer: Probably not
Question 3: Then how will INVT pay back TCA in the future?
Possible 1: Fortress (or Softbank) pays for it
Possible 2: INVT stock price will rise up to a level that a small portion of the O/S share will pay back the debt.
Regarding to Question3 possible 1:
Recall Fortress already paid all the debt for INVT last year to exchange 70% revenue of the company, and INVT assets was determined as $43M.
Fact 3:
INVT current o/s=19M (was 16.X M in Aug 2017), float: 17.55 (was 16.9 in Dec 2017)
Question 4: Is INVT a dilution machine?
Answer: No, or not yet.
Conclusion:
1: INVT does not favor to solve financial difficulty by dilution and converting shares.
2: Fortress has confidence on INVT's future, so does TCA fund. They gave cash to INVT to exchange profit from INVT future gains.
Question for us
Do we have patience?
I will wait to the end of this year. i believe the target price of INVT should be at least $0.6/share. $40M (assets)/ 19M shares * 30%=$0.6
