You're reading too much into this. The long and short of it: Sigma ain't going to $100. No time in the coming years anyway. But, it may have a $750,000,000 valuation in the next 12 months, which is a healthy stock price, even at 75,000,000 outstanding.
There are certainly a lot of unanswered questions, but your present scenario makes some sense.
It is just unfathomable to think that John Rice and the board would devise and actually execute a plan that would effectively result in dilution of more than 80% for existing shareholders and any others that might invest in Sigma in the coming days (prior to actual increase in the number of authorized shares).
And, to take such unconscionable action for the sake of the $2.1 M they raised in the Purchase Agreement of January 27. How can you “sell out” your present shareholders for such a minimal return.
There are so many things that don’t initially seem to add up. As Silver stared earlier, how would Sigma management expect to have an option to raise the 120 M shares by a reverse split when there are presently only 22.5 M shares authorized. And, does management actually think they can obtain a favorable vote from present shareholders to increase the authorized shares from 22.5 M to 121 M when it devalues the present shareholders by more than 80%.
Hopefully tomorrow’s webinar will help shed light.
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