my first purchase was 11 months ago at 36 cents, the stock is now at around 4 cents. Thru some trading (sell/buy) I have been able to get my avg down to 11 cents, and look I am still under water.
From the filings in SEDAR I see they just had a filing on another raise for around $1.9 mill US, so there is no shortage in their raising money. I see the terms being a 15% discount on the share price which is very reasonable, but the problem is that the share price is so low right now. Previously when it was trading around a 25 to 50 cents it was much more reasonable.
"Subject to adjustment, the holders of the Debentures, at any time, may convert all or any part of the Principal Amount outstanding under the Debentures into common shares of the Company (each, a “Conversion Share”) at a conversion price based on a 15% discount of the shares calculated by using the volume weighted average closing share price of the Company on the 30 days prior to receiving notice of conversion from the holders of the Debentures.
All securities issued pursuant to the Offering are subject to a statutory four-month and one day hold period from the date of issuance pursuant to applicable securities laws of Canada. Proceeds from the Offering will be used for general working capital to continue the Company’s ongoing obligations."
From the MD&A 3 months ending May 31,2019 which is the latest filing, they list the following, with a subsequent events share count of 705 million shares, giving around $70 mill valuation at that time at a dime/share.
Outstanding Share Data
As at the date of this document, July 29, 2019, the Company had the following number of securities outstanding:
• 705,205,955 common shares issued and outstanding
• 65,510,811 options outstanding
• 58,245,752 warrants outstanding
Assuming a share count not too much higher than July 29, we're now valued between $25 - $30 mill. Just to get the share price back to a dime would put the valuation back to that $70 - 75 mill, that's steep for a company at this stage.
In summary, I'd like to see the company stop buying assets and start monetizing them, and maybe they are starting that transition, hence why we haven't gotten news on new ventures.
