mCloud Technologies Corp (MCLD)

[Tickbomb]

Ya it's just a gut feel. They are burning through what 4-5M/Q at 59,000 assets. so another 11,000 assets x $150 MRR x 3 months = $4.95M.

But that this operations neutral. They need to continue to grow their operations and sales etc. So I think that operational cash will continue to outpace cash growth for a while, unless they can get to 10,000 assets/Q velocity. I just get the feeling they will need more than 15-20M in cash to get to a point that this is really sustainable. Look at kinaxis. They had $170M share capital for a 200M revenue business that is profitable now. We have 80M, mind you the convertibles + warrants should shift to share capital if they convert. So that would be $130M.

If they can pull off a no more raised capital and grow with cash flow, that is the unexpected IMO. I just see this getting diluted to over 100M. People hate the dilution, but 100% of nothing is nothing. That's why venture capital funding in the pubic market doesn't work unless there is a real hard on from the right fund managers. 100M shares of a $2B business is $20/share. I'm fine with diluting to get to 500,000 assets. Even 200M shares still gets a great return from here. So i would have rather them just rip off the band-aid and get the $50 in one shot. But maybe when they list on the NASDAQ (can't now with a $1 share price) they will get a way better valuation. Who knows when that will be.