Replies to post #44164 on Sigma Labs Inc (SASI)

[alanthill]

The choice is dependent upon your longer term outlook for the stock price. Just to make things simple assume that the stock is still trading at $3.00 when the offering comes to market. The units will be priced somewhat higher because of the attached warrant (let's say $3.20). If you buy the units you will have the right after six months to purchase an additional share of SGLB for $3.84 (a 20% premium to the offering). I didn't notice, but there is likely an expiration date on the warrants, after which they are no longer valid. Your decision then is it worth it to pay an extra .20 to buy SGLB at $3.84 in the future. Keep in mind that if for some reason the price of SGLB does not exceed $3.84 in six months you would be better off simply buying additional shares on the open market. The longer the warrant is valid the more valuable it becomes. If there is a major contract announced, or you believe a new contract is inevitable in the near future, than the units are clearly worth the small premium. My numbers are just an example, you can plug in your own numbers and make your decison.

[silversmith]

MD,
The common stock is included in the uplist. A 'unit' consists of a share of common stock plus a warrant to buy another single share of stock at a fixed price. The warrant price will be set by SGLB on the day of activation of the S1. The warrant's fixed share price will depend on the closing price of a share of SGLB common stock on some date just prior to the activation of the S1. Then the units and the common begin trading on the NASDAQ.

So lets say that the common share price appreciates in value during trading because the market feels that SGLB in undervalued and/or has growth potential. In that event, now, the common share price is higher than the fixed warrant share price that was set previously by SGLB. So if you paid $5.00 for the warrant, and the share embedded in the warrant is already worth $6.00 because that is what the common is trading at, then there is an embedded gain in the warrant. At that point the right to buy a share of SGLB common, under the warrant's rights, should be worth an amount equal to the common share price, plus the immediate embedded gain. Thus it should trade higher in price than the common.

As far as the decision to buy now or wait for the units, I have made my mind up that for CURRENT share holders(and probably for those sitting on the fence, not yet in, but won't have enough cash to buy a meaningful position once the dust starts flying) it is better to own additional shares now. Adding now, in my opinion, should capture the pop in price for the uplist, and reduce the number of shares that might be sold in the offering, thereby reducing dilution. With the S1 offering capped at a maximum dollar amount, if the common share price rises before the offering goes live, then they will sell less shares in getting to max cap. Keep in mind that they do not have to keep selling until they get to the cap either. They can sell less if they want to. I don't think that will happen though. I think we will see large demand for the offering, as I personally feel that SGLB is significantly undervalued.

All the best,
Silversmith