What an absolute basket case this has been for shareholders of late, but also one which might provide opportunities for those with an appetite for risk.
My recent straw below details the company's recent quarterly activities report. In short, this was actually pretty positive. Demand in SE1's services looks to be picking back up, following what was a post-CV19 period.
Now the recent bad news. Management recently diluted shareholders, raising $2.5 million privately at 0.034 per share. This sent the share price crashing (not surprisingly). Dont get me wrong, if I had been a shareholder throughout this period, I would be livid. Compare this to the recent 8common cap raise - which was cheeky, but still a respectable one for shareholders. The differences are in the detail. It very much seems that SE1 had demand on the sidelines wanting a discount off market and jumped at the opportunity to dilute existing shareholders and increase their capital.
The opportunity? SE1 had enough capital in the short - medium term before the raise. With the addition of the funds recently acquired, there is a chance SE1 won't need to dilute shareholders any further. The next 12 months are expected to be more positive for the company, with Abiomed upping their demand. In addition, if NanoDX are provided with FDA approval (SE1 is the MEMs supply partner), this will further increase demand for SE1's products. There is also a chance that SE1 might have raised additional capital due to an indicative order coming their way (noting that this is speculation).
The risks are certainly evident, though. There is no doubt the recent decision to dilute shareholders well under market prices will result in many holders selling and cutting their losses. This could continue to occur over the near future. In addition, although unlikely, there is the possibility that one of their biggest clients has walked and SE1 are trying to get cash while they can before more the bad news hits the market.
DISC: I have just purchased a very small holding at 0.035 cents a share. I think this entry price is a good one noting the likelihood that SE1's future is a good one. I also hold SE1 on Strawman (where I paid 4 cents a share). NOTE: I am preparing for a bumpy, volatile ride - one where I will not trust management to make good decisions on behalf of shareholders (sad, but true). The risks here are too great for me to part ways with any considerable some of money. But I will put a small portion towards the opportunity, noting the impressive technology that SE1 has developed over a number of years.
