ss9173,
I agree with all you stated except your first paragraph. From what I recall, Mike Zima said 5B of dilution is possible (anything is possible given the state Neom is in. To say anything else would be silly), but he also stated, "...ahh, we certainly hope not, and our interests wouldn't be for that to happen either."
ss9173, we do not know "anything." We do not know what they are thinking and can only wait and see what transpires. I do not feel it fair to say that the Neom directors believe that 5B share of dilution is imminent. What I do feel is a fair statement is that with so much uncertainty and so little information, investors may want to seriously consider whether they have the stomachs for this stock.
But all this aside, I would like to reiterate my personal feeling (and I consider this a reasonable thought) that YA chose to issue the last tranche in monthly installments to accomplish two objectives:
1) Minimize further capital outlay with Neom and ensure the $4M carries them through to profitability, particularly because Neom had already (to our knowledge) achieved their milestones for building and distributing the infrastructure.
2) Avoid arming Neom with more funding than it needs, so that in the event they secure large licensing deals they will not be able to use YA's own funds to buy back debt. I can fully appreciate this thought process. Better to issue the funds in installments, and only in the amounts which are needed.
We have all noticed that the installments have systematically become less month over month. I feel item #2 makes a good deal of sense...and IMO Iain is not about to comment on this as it could cause the pps to surge if the public became aware of potential near-term profitability, which in turn would cause their expenses to rise based upon the conditions set within the financial instruments.
Yes, my sentiment has changed and I am not pleased at all with what we learned on that call, however, I remain quite confident in Neom going forward.
Best,
BC
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