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Else Nutrition Holdings Inc. (BABY.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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0.7000-0.0200 (-2.78%)
At close: 03:59PM EDT
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  • L
    Luigi
    From CEO: “We are transitioning from an R&D company to a sales and marketing company and that transition can be painful as many shareholders that invested at an earlier stage of the company’s growth get impatient.  The transition is not just in the company but also includes the type of shareholders we would like to attract. We value and appreciate all our current shareholders but moving forward we need to attract new investors and shareholders that will give the company value and time to grow into a global brand; this will take time and money. “
  • S
    Scuba
    I'm now a year invested with BABY. My sentiment hasn't changed. I'm in over 12k shares. Proud of myself for getting this far. I bought in at $2.60 so right now this hurts but I still feel the same about this company now as I did when I started. So let's keep positive and keep buying to average down for those that are the same boat as I am. Im still certain this will help my retirement. I want to reach 20k shares!! Longers unite!!!
  • L
    Luigi
    I have increased my original position by 10% 🤭
  • j
    jean
    Why would you buy at 1.05 when you can buy for .74?
  • L
    Luigi
    I never doubted the product, execution and management. The only thing I hate, is how markets are treating this stock and how someone is destroying our investment just because they control the stock for now.
    Only complain about last offering is the way they have communicated the whole thing creating uncertainty about volume that created lots of turbulence, indeed, stock oversold.
  • D
    DP
    interesting so my order in last minute goes through at .72 yet doesnt show and closes at .7
  • G
    GMC
    The demand for this product will keep increasing. The company just needs to get a strong footing.
    Holding here in Canada!
  • K
    Kilgore
    Is $8 million in revenue for 2022 a reasonable estimate?
  • b
    balls
    Currently, the technical figures all point to selling. I belive we will see at least 200k more shorts on Monday because of that. There will be volatility. But the sp shouldnt move much as It is a good buying opportunity for the short term, as there is no risk of going under. So investors will continue to buy. There are significant changes in the ways shorts are factoring the sp. Im still collecting data. I will share it in a few days. I will already say that it seems that the probability for a squeeze have actually decreased.
  • M
    Moose
    Today's video conference won't discuss the financing as it has not closed yet and being a Canada financing couldn't be disseminated in the US regardless. After it closes there should be interviews set up through their mediums to discuss it. The things upcoming needed some cash padding and the plan is sound, solid and ahead of schedule. Business is doing way better than their most aggressive multi year models could have envisioned.
  • M
    Moose
    This dilution was at 1.05 and 1.25 so an average of 1.15. Presumably the warrants at 1.25, as others have alluded to, will be exercised and that means we will be back to those prices. Assuming everything is exercised they diluted 14% to raise over 18mm in cash and are down 40%. The other aspect that folks aren't thinking about is other warrants in the 2.25 and 3.25 range coming due in the short term will expire worthless so thats dilution we won't have which will offset a large portion of this dilution. Now, I think all of us would really like that 3.25 warrant to be in the money and the company raising cash at 3.25 putting a bunch of bank away. We shall see what happens.
  • O
    Owen
    Looking more closely, that “warrant sweetener” to close this raise really makes the price of the Units closer to the current PPS. That’s why we’re down to $0.55, because a free share is essentially attached. I’d love to see management participate to at least some degree.

    Where they raised is not what I perceive to be the fair value of the company, and it’s hard to imagine management does either. And that’s what makes this so frustrating.

    I can live with this because I feel they want to meet the moment and not miss their window BUT this is now the THIRD raise since I’ve been an investor in ELSE in which dilution has occurred at pricing BELOW the market — below a level that already seemed suppressed to begin with.

    As an investor for 2+ years, I believe strongly in this product, roadmap, and management team. That said, I truly hope they realize the poor sentiment these raise terms continue to send. The last time they raised an underpriced deal, the stock fell from $2.00 into the mid-$1s below even that offering, and it’s never recovered.

    Their next raise will be of paramount importance to me and how they take care of their longer term shareholders will be top of mind.

    I hope it can be a $40-$60mm raise at $2.50-$4.00 a share or something, hopefully on the NASDAQ, but if the PPS has not recovered, I’d
    implore them to explore an alternative to a public offering, like a JV partner for credit supply, bridge financing/convertible debt, or if they need significant capital, then a strategic investor who buys a percentage of the company at an above-market price.

    Long story short, I hope this is the last time they raise capital on such brutal terms. An underlying company this good should not need to garbage hunt for capital markets and capital partners — it’s unfortunate.
  • C
    Carlos
    can someone please explained what happened??
  • L
    Luigi
    in the meantime: "We have secured these 2,000 store listings and we will announce them when allowed to." - Elisabeth from IR
  • S
    Squeeze Van Buren
    Great opportunity
  • M
    Moose
    If the stock price is still here when this deal closes next week then they should turn right around and use a million of it for a stock buyback.
  • L
    Luigi
    Watched the presentation where they stated that they have built a structure that can support hundred of millions of dollars in sales. I submitted a question asking why did they turned down Walmart’s order then?
  • K
    Kilgore
    I usually get accused of being a shorter here, but I see myself as a voice of reason. Today it seems like I'm the only one that thinks this is an overreaction. The amount of unrealistic impatience I've seen on this board is remarkable. I've been on the fence about it, but I blocked Luigi today.

    Our baby is not without risk:
    - they depend on a specific set of ingredients and supply disruptions are expensive
    - a microbial contamination issue at this stage could destroy their brand image
    - the FDA will look at a new product like this very carefully, and may demand more clinical evidence than for other infant formulas. There will be regulatory delays.
    - they have to scale quickly to get profit margins down, without going bust

    However, the upside potential has not changed.
    - customer response is positive, this product is meeting an unmet need for a lot of parents
    - I cannot explain how much I think Europe will like this product
    - China is a huge market, they already eat plant based formula, and there is a growing consumer preference for organic, clean label, foreign manufactured products. Especially for baby food.

    I don't agree with everything management has done. Their deadlines slip, but I mainly attribute this to dilution. And Hamutal did tell us there would be more dilution. Why not now, on the eve of entering two huge markets? They've issued about 7 million shares, yes? Price is down over 30%? Do *you* think that is overreaction?
  • M
    Moose
    Hamutal and Ariel both lost 5:million in stock value this. I bet they are pretty motivated to get it back.
  • b
    balls
    Some have written here that the offering price is too low. Its probably not. Selling in big amounts is hard and negotiations on pricing is a complicated area. Elses management have been responsible with money from day one. As a share holder, who like some of you is in the red now, i know that dilution is better than debt for us. But I personally think dilution now was a mistake, because of the lost of sentiment. Luigi voice here represents what many probably are feeling and thinking and else should take that into consideration. Try to stay calm. Longers will prevail. Else will continue to grow and expand and the sp will be significantly higher eventually.