Why would ELYS go up
They filed a preliminary with the SEC that states they raised $1 million at a price lower than the current market price. This means management doesn't even believe ELYS stock is worth more.
Michele C is a convicted crook that had his hands in an illegal stock scam a few years ago. even if he is flying straight now, the mere presence of him running ELYS is reason enough for fund managers to never invest in the company. There are 10 thousand other companies in the U.S. that funds can invest in, why would they take a chance on a convicted CEO.
While I do admit the sector is strong and growing, their balance sheet is weak. $30 million of there 42 million is goodwilla nd rights of use assets which really have no value unless someone were to acquire ELYS.
From an operational standpoint they lost $3 million for the 3-months ended Sept and over $8 million for 9-months ended Sept.
Bottom line numbers are much worse since they lost $11 million for 9-months ended Sept
Their cash position is bad, as is evident with this most recent $1 million capital raise, but the more concerning part is that they may run out of money in late 2023 unless they raise more capital.
Will the capital be at a discount to market as they just did, or will it be some toxic financing like a convertible note.
They have negative cash flow so each and every business day they open the doors knowing they are going to lose money for that day.
They are not in the business of magically turning things around like generating enough cash to sustain themselves or turning a profit which would make them an attractive investment, so I ask you why would anyone stay the course and then be happy
