So that does bring us up to 106M shares in total now I believe. Making my round-off 100M share-market cap no longer a good round off number but a reality number. Now we are over there.
That doesn't include future dilution, of course. So I'd like this $1.2M to carry us to profitability within the year and we get a big, substantial capital raise at a much higher price somewhere. I don't see the value of another acquisition. But perhaps KERN really puts the pressure on them in that regard. Not sure. good questions to ask. When people have permission to short your stock with zero risk (ie, convertibles that convert at any market price - no price floor), there needs to be demand to meet that. Demand at risk against shorts with no risk is not good.
KERN is actually at a much higher share-count than what they show. Shares will hit the market starting this month. They could more accurately be priced at $450M right now compared to our $21M price tag.
I don't think that gap will remain over the next few years. The gap is going to shrink by KERN falling and/or HLIX rising. And both could happen simultaneously as both improve their fundamentals. There is really nothing here that concerns me except for the dilutive factor.
The $1.2M we just got is interest free. It's not a loan. It was a capital raise. The cost is not interest. The cost is dilution. But, it has a floor. 11 cents. It was already bought and paid for. And theier hands are tied (restricted) for a full year to my understanding. Those shares are not even registered at this time. They'll have an S-8 filing in the future one day because that's they bought. Just like we had one for our omnibous incentive plan.
Is it better to borrow $1.2M or raise it this way? Well, that's high finance. Depends on price, depends on many things. Depends on how the capital will be deployed and how reality plays out to theory, etc. Everybody wants to get paid. To me, this all looks better than KERN as I understand things. And it sounds like cannalytics (sp) is very high margin business in theory. I don't know what we charge people, but I do like that theory for sure. Selling data we already have. Packaging it, marketing it, simplifying it, and selling it to those that really could benefit from it.
