With a $4.6M loss, that would mean Wave still has approximately $7.8M of working capital as of April 1st. Therefore, they have at least 5 months of cash left which funds operations through August. That being the case, they do have a couple months of cushion before they begin to sell more shares. I find it interesting that they used the $2.14 share price of April 13th for the prospectus, being it wonderful timing with the market price and the filing or whatever. For some reason, to me it insinuates that the first round they issue in the coming weeks that they will seek at least that price due to some developments they are counting on. I bet that they are betting on a price rally due to Q1 results or some news to follow in June or July. They cannot be thinking of waiting until Q2 results for a price rally because that would be cutting it pretty close in that they come out mid-August and Wave will run out of money in the first half of September.
My whole point here being that they obviously want to get the best price (over $2) for these rounds of stock sales and there must be something in the pipe-line within the next 2 and a half months that would propel the stock above 2 or 3 bucks that they are preparing to PR. A buy-in would entail a several million share issuance and would be a large percentage of the $25 million, so obviously they would like the stock price to be around $3 or $4.
This is an exciting time to be a Wave investor. I would not be trading for swings for the next 3 months because any one morning some news could come out and send the stock up a couple of bucks.
Just my 2 cents,
Paul
AI
