Replies to post #88 on Celsius Holdings Inc (CELH)

[mullimatt]

nevermind... figured it out

[petermic]

Hi Mullimatt:

sorry I didn't see your post earlier - anyway, I'm basing my statement on the following:

"In consideration for entering into the $16 million agreement which provides the $15 million of future funding as well as the $1 million of funding prior to the registration statement being declared effective by the SEC, we agreed to issue to Fusion Capital 3,168,305 shares of our common stock"

So, for starters, CSUG gets $1 million in exchange for 3.2mm shares. To a large degree this is a financing fee and does not reflect the average price the company will get for selling stock.

You are right that future take downs of this cash will be at prices much closer to the market price. However, the high cost of getting this financing started (way higher than a bank loan, for example) points to the weakness of CSUH' financial condition.

I've seen Fusion financings many times before. Generally, it's a negative signal, although not all companies using Fusion do badly. Many do, but not nearly as high a percentage as Cornell, for example.

To see this, just google Fusion, and look at charts of companies that they have financed. Not a terribly pretty picture.

Peter