From a fundamental value perspective... In theory, a dividend would be a worse use of capital than a buy back. At a 60M market cap, just like using 2M cash to buy back shares adds roughly 3% value, using 2M cash for a dividend is about a 3% payout. Difference is, the dividend is a one time deal. In theory, in a perfect world, the share price should increase 3% in antication of the dividend and then decrease 3% after the dividend has been paid, anything more would be a market over reaction not based on actual value. It does nothing for investors or valuation after the fact. Not unless there was an expectation that they would be paying dividends regularly going forward, but they have been clear that's not the plan. Capital will be used to continue growing and improving the business, which adds significantly more shareholder value than buy backs or a one time dividend. A much better and more sustainable long term plan.
But again, just like buy backs, it could cause the stock to pump so I'm not saying it isn't worth a try. But it very well could be wasted money and if they were spending all their cash on pump tactics for the stock price instead of reinvesting in the business, I would be out. That's the path alot of OTC companies choose, pump the stock, but ultimately the business performance and the financials are why they never succeed. The caviot though, is that a higher share price does allow you to raise more capital with fewer shares having to be issued. So it can have a larger impact on shareholder value than just the up front measurable amounts I described. Which is why I would be OK with them trying something like a buyback or special dividend, just not over doing it with every dollar going towards pumping instead of improving the business itself. I still believe it won't be necessary as long as 2024 is in fact profitable and does stay on track for over 100% growth. Very few companies of this size have ever been able to accomplish that level of growth without losing tens of millions to do it.
I say let this year play out and if the SP hasn't reacted, I'll personally discuss alternative plans with management and get all the ambassador's involved to push for something we agree on as a whole. They will listen if that's the case.
