Ann: Variation of Skyfii 'Earn Out' Share Entitlements, page-2

Well, this is an interesting progression. Here are my inane musings.

The earn out of 21.8m shares at $0.2 is $4.36 mil which correlates to a projected revenue of ~$5.95 mil for CY2016 based on the old formula. Based on the growth rate thus far, this doesn't seem unachievable, but could be on the high side (Wilson forecast $5.1 mil for CY2016). The coming quarterly report should provide a better indication of the growth rate. Revenues ~$700-800 K should be quite promising I would think.

They have reduced the risk of the ~38% dilution to a certainty of ~14.5% dilution and guaranteed themselves some earn out shares. But the shares come with 12 month escrow conditions + additional voluntary escrow on existing shares (up to 53% !). So, they seem pretty confident the company will be worth more in 2017.

Looks like they're pretty keen to get some bigger investors into this stock to push the price around. Which would be good seeing as the lack of demand caused some poor person to have to sell out at 10.5c the other day. It will be interesting to see if there is any change in how it trades from here on out. If their plan has worked, should see some bidding back up in the 14-20c range to lull out some volume.

@Wini
@Stweeve
@heraclitus