Secure Point Technologies Inc (fka IMSCQ)

[zeynoc]

Fair explanation from DMRJ's standing but it is missing a lot of important point. It does not answer why and how this company found the institutional investor who is lending them 20mn which is an abnormal amount when you look at any metric that the company currently has. Secondly, also does not explain how DMRJ is happy with a subordinated lender position given that the current amount they got is even less than half of what they are owed given the working capital reference in the statement. Would they say yes to subordination if they did not see what's coming? This is the real question. No one can claim that they got less than 40% of what they are owed just to diversify they basically took the subordination. They needed to fell comfortable with that and it looks like they are.
In ter,s of what a financial investor brings, it will not be comparable to a strategic partnership but I am sure that they will increase the awareness in the stock going forward. Strategically will buy this company out down the road in my view but still has time for that.