True.
I think markets would have not reacted this negatively if Anshu would have signaled his readiness to operate on trade credit to get to profitability (stated in the ~$5mm revenue range). That would allow some breathing room to pay off the still outstanding convertible debt, which we've learned not all of it converted even though AS are now maxed out. In that quote you posted, he led with this:
"We are attempting to forge a path that minimizes dilution, but maximizes growth..." What I wanted to hear and I think the market did, too, is that they are going to avoid further dilution altogether. No "minimize" it. This was a hint that back peddled from his statements of the goal to retire convertible debt in 2018. If they add new authorized shares I'm guessing (I have no clue, but adding only a 100mm seems like it wouldn't do much) that number will be in the .5 - 1 billion range. The downward repricing after the 10Q in aggregate was in the ~ 25% range, so maybe the market is guessing similar to my guesswork.
I've felt like trade finance was his best route for a long time now to de-risk for other sources to come in on more favorable terms, but spinning out Nestbuilder has taken longer than I think they anticipated and getting products into shelves and realizing revenues seems to be, as well. The 30-something% YoY rev increase was not impressive in light of all of the talk about new products. In my opinion, a company with the right products and distribution at this stage should be in 100s% YoY growth range. There's no where but up. Perhaps next October we'll see that. I hope so.
You're right. Anshu needs to step up an execute now.
