Before I initiate this, I would like your expert opinion on the 'survivability' of the company. Some questions:
What is their burn rate vs cash on hand?
How long before an event that will further dilute shareholders?
Are there any near term catalysts for the stock?
Do you think it is gradually going to zero?
Thanks
Keep in mind that public company and listing costs are in the range of $350,000 annually, so a $9M market cap means nearly a 4% annual cost just to stay listed. The number of investors who play in the sub $10M market cap space is also very small, and this can mean a stock can drift for years. EGLX was EBITDA positive ($0.3M) in the Q3. It has raised money recently (funding and asset sales). But cash burn in the quarter was about $1.6M. Cash on hand as of Sept 30 was $2.1M. Bloomberg default risk is 26%, which is on the extreme side of things. We would give it six to nine months before more dilution. The company continues with a strategic review. It could possible sell the company, but our bet would be either a recapitalization or a partnership, if anything at all happens. We think it is 'probably' on a downward slope that ends near zero.