Value Microcaps Zip Code Changers

[btmfdr2]

Hi Zen, thanks for posting about Covalon. How are you figuring the share count on it?

Ob my math, the effect of the convertible financing dilutes the share count by about 10 million shares. Add that to the 10 million already outstanding and another million or so for stock options and warrants which had already been issued, I'm counting around 21 MM shares fully diluted now.

I'm just puzzled because I came across your post yesterday in the Canadian Kitchen valuing the company at $50MM.

If this is right the financing was absolutely horrible. $750K in financing to double the share count?? I can't believe the awful terms these companies get when they need access to cash.