Replies to post #21917 on Sigma Labs Inc (SASI)

[BRoubos]

The Warrant was extended in May 2014. From my understanding Sigma Labs probably would have done this because their expected timeline in January 2014 when they initially gave the warrant to Rockwell was different from that a couple months later, probably realizing that commercialization and contracts may take a little bit longer than initially thought. Sigma Labs extended it an extra 9 months assuming that share price appreciation won't be significant for the initially thought time being. But most likely it was extended to keep the investors interested, given they still are sitting where they are right now. Beginning of commercialization. Given the fact that Sigma Labs also announced official commercialization plans in May 2014, based on their retail presentation, the same time the warrant was extended, this is probably where official realization was noticed that the 9 month warrant wasn't enough time to actually attract the investor, because the point of purchasing shares through a warrant is to not buy them at a premium, but at a discount.

to understand warrants better, read about them:
http://financial-dictionary.thefreedictionary.com/warrants

Sigma Labs Retail Commercialization presentation:http://sigmalabsinc.com/uploads/Investor_Presentations/Presentation%20for%20May%202014%20Retail%20Investors%20Conf_REV1.pdf

What I like about the whole commercialization plans is that it has not changed since they announced it in May 2014. And we have now entered that time zone of Q3 2014 for Inspect and Q1 2015 for Deform without any public information given about extensions of commercialization, so I am assuming Sigma Labs is right on track.

But all in all, given the extension of this warrant until July 2015 for Rockwell, We should probably see significant price appreciation "with legitimate reason" between Q1 2015 and Q3 2015. Just my opinion though.

What do you think?

[MDuffy]

That's the "million dollar question" lol

[TedJ]

Crook so you think it is in your best interest as a shareholder for Sigma to screw over one of their major investors over the warrants.

Legally yes they could let the warrant expire, but that investor gave the company 3.5 million dollars that they needed to keep going and did not need to sell even more shares at 0.01. Yes that investor got a discount on shares at 0.08 and they also got an additional discount by agreeing to the warrants, but also took on some risk. The investors could have held out and said no to the warrants and demanded the other shares at 0.06 or demanded the warrants at 0.08. But Sigma and the investor worked together and both saw benefit for both to do the warrants based on what they expected the share price to do.

I expect that Sigma believed that things would progress enough that their investor would get value from the warrants and both sides would be happy. However, things don't seem to have progressed as hoped (maybe Sigma's fault, maybe GE's) but Sigma wants to maintain a good relationship with their major investor that negotiated with them in good faith. Extending the warrants doesn't really cost the company at this point. The warrant shares were already "on the books" since Sigma expected that they would be exercised.

The 14 million warrant shares are 2% of the 618 million outstanding shares. So by letting the warrants expire would increase today's share price from 0.114 to 0.1163. I can live without that increase at this point in time. Of course if the extended warrants are issued in the future, the company also gets another $1 million on the balance sheet which offsets a little of our loss.

We buy a couple hundred thousand shares on the open market and that does very little for the company (no money in the company treasury) as compared to the $3.5 million that went directly on the company balance sheet from Rockville. I'm not going to whine about the extension because in the long run I think I will be better off if they keep Rockville happier than you or me. We have more to lose if Rockville gets pissed off. They could have 60,000,000 shares and Sigma is still on a penny stock exchange and vunerable.

If management played hard ball with Rockville with their power, how do think management will deal with your interests as a minor sharehold?

I'm with management on the extension, better for all of us in the long run.