RE: TODAY'S PR FOR UCAD
Mach I have decided to officially post only over here instead of the three ring circus that is now called the CMKX board. The absurdity of the bashers' posts over there are beyond my tolerance levels. I hope this does not result in the migration over from that board of the lesser elements. I hope maybe a few worthy posters follow over to your board, which is respectful and genuine I feel, and free from those with an agenda other than to debate the legitimate merits of a stock. But if for some reason some of the snakes over there follow me and this becomes a problem, please message me and I'll return to posting back at the CMKX board. Thanks Mach.
As for today's PR, at first I was pretty excited about it but only because I literally had 30 seconds to read it at the time and the possibilities immediately popped into my head of how this could be used to leverage CMKX's situation. Upon further investigation, however, I believe this is simply a funding tool for UCAD. The significance to CMKX imo is that some of this money will likely be used to close down on the remaining % of the option that UCAD has with CMKX. Only 50% of the London company's shares are locked in escrow. The other 50% I assume could be sold which could raise somewhere in the neighborhood $4.5 million to pay down on the CMKX option. Additionally, the deal is structured well. The London company's shares are restricted for 2 years. That implies some pretty solid faith in UCAD to allow 50% of the London company's shares to enter the market while having to lock up UCAD's shares fully for 2 years. And to all the bashers screaming "oh they'll just short against those restricted shares anyway to make money", you'd have to be an IDIOT to short what will likely amount to 2 million UCAD shares in the face of the impending anti-naked shorting rules. Can you even fathom having to cover 2 million shares of UCAD on the open market if the anti-naked shorting rules truly enforce delivery (a big question mark I know but if this round doesn't do it, at some point in the next 2 years, this is a REAL expectation imo). It just wouldn't be worth the risk to short against these restricted shares on a stock like UCAD that move $1 on 15k shares traded. So this deal seems to be a pretty well structured one.
Bottom line is that it seems to me to be a reasonable financing package to help UCAD both expand internally and invest in CMKX. Things COULD get very interesting if UCAD-CMKX move to a fuller merger stage. One odd possibility that I just throw out there for kicks is that upon listing on the London Stock Exchange, perhaps there could be a pink sheet equivalent traded over in the US and perhaps UCAD could decide to issue a share dividend with a portion of the London shares which would naturally flow into all of our UCAD dividend shares, leaving the market makers short on a London-based stock as well. Interesting but I HIGHLY doubt that will happen. Would be kinda cool though.
Anyway, not the big wow factor I first thought but solid news for ucad. Not every otc company gets such a fair deal on a $9 million financing. And hey, we own a huge chunk of UCAD. Nice. Not going to move CMKX and not going to create any great ripples. But nice.
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
