Dilution is always a concern with microcaps. In addition to being barely profitable, Siyata had to finance the third party testing. For the US carrier, it was $500K. Canada was less but neither has approved Siyata. Once there is one Tier One carrier in the US and Canada, the others should approve much easier but still need those first two.
I'm sure the overhang is the reason for the crummy stock performance over the past 9 months. SIM.v has been in a steady downtrend since peak in 7/17. That's a long downhill slide.
Once approved, things should get a little easier but a big increase in sales always comes at a cost. Financing a big rampup in production and sales always takes cash. I have always been leary of the low margins on their equipment. The IR assured me that the new device has much better margins approaching 40% vs 20% for the older gear. He said that Israeli telecom financed the development of the original equipment and dictated the gross margins, since they were the primary buyers of the gear. Siyata developed the UV-350 on their own. The higher margins will help Siyata finance some of the rampup but there could still be a need for equity financing to go from $20million in annual sales to $100 million envisioned by mgmt in a few short years. Depending on their terms with the manufacturer of the UV-350 AND their ability to collect A/R within terms, they will likely need more financing. But hopefully the stock price will reflect the increasing sales and profits and any financing will include a credit line to finance A/R and a better stock price, hence lower dilution.
Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
