Pull your head in
@aquadog. Whether you are a long term shareholder or new to the company, you have to be happy with how Ted and the new team are delivering. Most company's that suffer a 90%+ share decline take years to recover (if at all) and usually after a large re-capitalistion / change in business.
Ted has been at the helm for 8 months now, has cleared the decks, extended the cash runway until the end of 2018, re-set the company's focus / go to market strategy, made some key hires, signed a new meaningful contract with a global organisation for their domestic needs (one would have to assume that CVT are talking with this group re their offshore jurisdictions), they have also partnered with Microsoft to accelerate their go to market strategy and see this as a key focus to expand this relationship in the UK, Europe and US. Make no mistake, this is a significant pipeline opening for the company, it's now up to the team to maximize this. Looking forward to further news flow from the company into the year end as the pipeline continues to be converted into revenue for the business.
Ted has skin in the game that he has paid for and the Board have options vesting from 20c +. They are motivated to deliver for the company to drive valuation, simple as that.
As for the recent acquisition with CVT scrip, this was cleverly put together by Ted & the board. The appendix 4c's are going to start looking somewhat different come December, with a full 3 months of revenue flowing through. As for the valuation paid, after locking in the first tranche payments at $0.0818, we can now start to see what effect tranche 2 & 3 will have in terms of dilution to shareholders.
Worst case if these payments are made using the lower end 10c valuation it will by 8% dilutive, if the share price is trading at a vwap of 15c it comes in at 6.53% dilutive. If the share prices continues to march higher into the year end, i'll adjust the table accordingly.
Needless to say, Iam quietly bullish on CVT's prospects over the coming 3 - 6 - 12 months and am now happy to buy on weakness to average down, should I get the opportunity. A re-test back to the 200 day MA at 6c would be nice thanks.
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