Replies to post #89629 on Savvy Trades and Investments

[gilead23]

The more I look at wagz the worse it looks

They tried getting this product out there a few years ago. If you look at the BBB comments on it the collars didn’t work well and service was poor from the company. At the time one of their customers referenced an order number of 1024 or something implying almost nobody bought the things.

Then it seems the product was pulled from the market. They allegedly had a deal with a major telco recently that seems to have pulled out, not exactly an encouraging sign.

So we have a company purchasing another company that has basically no revenues, and a questionable product that is well outside their area of expertise and they are giving up a third of the company to buy it.

And let’s keep in mind that the product is a $300 dollar dog collar. This does not sound like a product with a large market.

Wagz has dumpster fire written all over it.

[nelson1234]

Kik, Hweb, Gil et al re: SGMA I am not claiming the SGMA Wagz deal is a good one. Seems to me SGMA, in essence, will be giving up like $8 mil in debt its owed, and maybe some receivables in return for what is probably a low revenue and currently money losing company.

However, I don't believe thats SGMA will additionally need to dilute by all that much... see below. The debt WAGZ owes to SGMA converts to shares of WAGZ. So I think SGMA will own the majority of WAGZ prior to the deal closing, and thus the diltion will be minimal.

But, I could be wrong....appreciate any thoughts..if you think my interpetation is right or wrong????? 'The company' is SGMA.

"In addition, as of April 30, 2021, Wagz was indebted to the Company in an aggregate principal amount of $7,199,100 under the terms of the Convertible Secured Promissory Note dated May 29, 2020, the Convertible Secured Promissory Note dated January 27, 2021, and the Convertible Secured Promissory Note dated April 30, 2021 (as amended, renewed or otherwise modified, collectively, the “Convertible Debt”) and the Secured Promissory Note, dated April 30, 2021. The Company currently is Wagz’s principal source of working capital to finance operations. The Company’s primary secured lender has limited the Company’s advances to Wagz that are made since January 29, 2021 to $5,000,000, of which $1,475,000 is included in the $7,199,100. Pursuant to the terms of the Agreement, the Company will convert the Convertible Debt, plus all additional convertible debt extended after April 30, 2021, into shares of common stock in Wagz immediately prior to the consummation of the Merger."