Biotrack and MJ Freeway
I would love to hear EG's perspective on these two. I don't know all the differences. I just know they are direct competitors, and MJ has about as much sales as HLIX combined at this time.
MJ Freeway could be affecting HLIX on a comparative basis right now, but who knows. They have a lot of cash at the moment, and they are coming public too. I mentioned years back I would love to have stock in them if they came public. But not this way. It's too risky, even for me, at this time. I need dust to settle. They have emerged as KERN. Basically, they came through a SPAC, whcih is a Special Purpose Aquisition Company. They are new deregulated blank check companies. Basically, same way HLIX went public in a reverse merger, only through a SPAC you go directly to Nasdaq.
This is exactly how PHUN went public, which I made a lot of time-stamped posts about here and other places. So I have a good feel for it. The warrants all seem to have the same exercise price on these, the same stuff over and over. They come out with a low float, fly super high, then come crashing down. And that's what's happening to MJ Freeway right now. Personally, I feel safer and more grounded with Scott Ogur at this time. And Zac knew what he was doing with HLIX, building ground up. This one could be more like exploitation of Amy at Freeway, but we shall see how the cards fall.
Currently KERN is at $15, having fallen from far above $40. And they have warrants that exercise at $11.50,, bringing another $5 M in shares and $60M in cash if exercised. And they would be exercised as long as there is that arbitrage. But unlike PHUNW, their warrants are expensive at $1.70. I was able to get PHUNW at .50 and sell at $1.70ish.
HLIX has a lot more shares at this time. If they exercise, that arbitrage will close. That stock would be $11.50 or less in no time, which is what happened to PHUN. But in PHUN's case,there was a cashless exercise because they missed the deadline to register shares. They blamed it on the govt. shutdown, but the SEC does drag its feat and constantly sends things back for amendment. That created dilution for them, and shorts, and no cash to show for it. So, I love them now at under $2. And I made good money with their warrants, but KERNW is pricier, and a lot less revenue than PHUN. If a cashless exchange happens with KERN, they could come crashign down here with us. IF not, they could settle up there at $15 for high valuation. Or maybe come down to $5. At $5, they would be equal to our market cap but with a lot more cash. More of a single focus, and on Nasdaq.
I prefer our diversification and our price at this time. Especially IFF I could be so lucky to get .50, and I am asking for a handout there. It's going to be interesting to see how everything falls out of the shake. After living through PHUN, KERN is a hot potato I don't want to touch. PHUN was an Indiana Jones experience for me, where I narrowly escaped bridges collapsing under my feet, coming out with a nice profit because of good fortune and lucky fear selling. Something didn't smell right to me when everybody got quiet. Quiet ones scare me. The noisy ones, not so much.
EG could add a lot of perspective here I think.
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