What's wrong with UNQL the company Unique Logistics International Inc.
conducting the business as a middle man? Isn't that Amazon is a middle man too? Their margin is low low as well. Let take a good look as of June 30, 2022 Amazon net profit margin is 2.39%. Outstanding Shares 10,187,554,818. No a/s virtually unlimited a/s with market cap $1,452,439,690,402. No compare UNQL with Amazon. All I want to let you know is on other side of the fence in a similar situation. UNQL on track for billion dollar mark net profit, and only have 800 million a/s market less than 11 million.
When a company goes public raising money is one of the most common motivators. For the first time they normally to raise money so it can continue to scale and grow. At the very least, it can fund day to day operations. Stock dilution can help raise money for the next stage of growth. It can also help a company just meet its overhead. For some companies, this option might make more sense than taking on debt or selling off assets to raise capital.
As an investor, we first need to calculate the dilution coefficient. The circumstances of share dilution can influence how you react. If the company has a strong growth outlook or more shares are created through MERGE then it as an opportunity to buy up more shares at a discount before they jump in price again. However, If the company seems to be struggling then we always have an option cut your losses move on to the next stock we think it have better potential.
Trillium and 3a Capital already exists before the merge. Dilution already set in stone not much that Ray can do to avoid that. Anyone read their financial statement be well aware of the situation. For me instead of crying, I stay as calm as possible underlying issues and the problem to see if it worth of my time and my money investing here.
The new shares structure that is for the MERGE if the Merge happen we move to bigger exchange. I am not counting on that yet. You keep nails on thing that not yet happen. There is no such thing as 9 BILLION more preferred shares. Frankly speaking, I can't help when people don't understand the new share structure of the MERGE.
SCFN he say Nasdaq will not list any company that has an outstanding note loan from the fund. This is a piece of the puzzle we fail to take into account. Maybe that is the reason Ray created the New preferred C and successfully executed an agreement with its two toxic note owners for an exchange of notes and warrants of $3.9 million into equity. As a result, the company eliminated all the convertible notes on its balance sheet. Keep in mind the series C Preferred shares redeemable have a special combination of feature that specify the date at which the share can be converted. This allows issuers to avoid or defer dilution control. They also have the option buybacks the share they issue.
I am not supporting company dilute share. A/S max is not a good thing we want to see. For now the stock could temporally recover based on the a/s reach to the maximum limited.
