As a long time stock holder in COIN, I love the idea of the acquisition of terraspheresystems, I love the COIN product idea, but once again I have concerns. I am concerned about the huge price they are planning to pay, $25 million for a company with only a reported recent flurry sales of 4.5 million dollars in 6 months. We have no real financials on Terra yet, and there are insiders common to both Terra and COIN, including some of the top dogs in COIN being top dogs in Terra.
I am also not crazy about their using the recent distressed stock price (about .76/share average) as the stock price to be used for paying what may be an inflated price of $25 million to Terra for buying the Terra company. Lastly the sellers of Terra will saddle existing COIN stock holders with anti dilution rights that gives them more shares if COIN sells any shares to raise cash (which is almost a sure thing, that I think we may need to count on, selling more shares to raise cash), from what I just read today.
I can't help but wonder if recent shares were not dumped by some insiders to help push the price down, so they could get more COIN shares at a lower price in a Terra buyout, for their shares of Terra. Sorry, but I am not the over-trusting type. Been screwed too many times.
But then, if they fix this buy out of Terra at a price of .76, and add the proposed anti-dilution clauses, how will they get the stock back to $1/share quickly, and fix the latest new Nasdaq delisting notice problem? And how will they raise cash to pay bills and cover ongoing losses with out giving away free shares to Terra-Coin stockholders due to the anti-dilution clauses.
This is starting to look more like Terra stockholders taking over COIN, in disguise!!!!!
There is a lot going on here with this company, and we have little visibility as share holders right now to real earnings/losses/cash drain rates, except for the ongoing losses last reported, and the recent buying spree that is underway.
I am starting to fear a huge OS balance, no earnings yet, and an eventual R/S and real screwing that may be under way.
Are we on the way to penny land here, like .01 to .05 in 6 months to a year?? Or am I just imagining things?? Or will they pump the stock price back up to $2 before they dump all the Terra acquired shares in a year? Seems some or maybe most of the Terra issued shares will be restricted from sale for a while. Or will this all work out, and COIN will turn into an ultra profitable diversified food industry company in spite of a massive number of OS shares issued by this time next year?
Perhaps we will buy Kroger next?
One thing is for sure, if the past here is any clue, then we have no clue what is coming out of the closet here next!!!
I am still long, even added some COINW last week but getting a little nervous here now over the Terra buy out!!! I don't see how we can afford to pay $25 million for a company that seems to barely have sales itself from what I read (???) of just 4.5 million $$s in the last 6 months. I say barley has sales, as the first unit they sold is reportedly just being commissioned into producing product(Ref. the recent SEC document). Now that could be a typo, it could be they have other sales, and systems running with a history, I don't know!!! The Terra sight claims the inventor has a 20 year history, but I don't see his resume-history on line.
Since Terra is not a public company, we have no sales, or profit/loss/equity/working capital visibility whatsoever.
I am looking for meat to this entire story!!!!!
AI
