Imagin Medical Inc (CSE: IME) was the first company in which we at The Deep Dive covered. The focus at the time, was a financing the company had entered into which would largely impact shareholder value. Although we glanced over the share structure of the company, we didn’t dive into the insider positions currently held.
This original article has bugged us a bit as of late. This is largely due to the method in which we laid out the data for viewers. It wasn’t as clear as we’d like it to be, nor as pretty. As a result of the recent excitement that has returned to the stock, in addition to several rounds of options, we felt it was the perfect time to revisit the company’s share structure.
Imagin Medical & Its Convoluted Share Structure
Imagin Medical’s Share Structure
In short, Imagin Medical’s share structure is a mess. Although the fully diluted share count isn’t ridiculously high, it still has its issues. Essentially, the company is riddled with outstanding warrants and options. Further to this, it hands out options like candy to consultants as well as to company insiders. What we are left with is a mystifying labyrinth from the company. We did our best to compile the data below for you based on company filings.
Note that the above chart indicates everyting that has occurred related to the companies share structure since September 30, 2017. This is a result of this date being the latest financials available for the company, which were filed on SEDAR on January 18, 2018.
Let us be the first to point out, that there is some discrepencies with what is reported by the company. Based on the information currently provided, we were able to calculate that 92,952,772 shares are currently outstanding. As of the companies latest Form 7 filing on the CSE, they pegged this number at 100,009,862. This is likely the result of converted warrants, as we know the options to be correct.
For a market valuation, we’ll use the figure most recently presented by the company of 100,009,862 shares. Based on the closing price on February 2, 2018 of $0.30, this gives the company a valuation of roughly $30 million. On a fully diluted basis, the market valuation of the company climbs to $40.97 million.
It should also be noted that there is currently a financing underway for the company which will affect the current share structure. This raise is for 625,000 shares at a price of $0.32.
Imagin Medical’s Insider Positions
With respect to the insider positions in Imagin Medical, we’d classify it as fairly standard. However, this is largely a result of the recent five million shares that were issued to the CEO. Prior to this, the percentage of company holdings owned by insiders was dismal at best.
Based on the share structure outlined above, it is estimated that roughly 9.83% of the Imagin’s outstanding share count is owned by insiders. On a fully diluted basis, this figure remains relatively unchanged at 9.59%. Keep in mind that this figure will be impacted by the current private placement that is underway.
Trying to follow along with Imagin Medical’s filings was extremely labour intensive. Although they are fairly clear on what actions they are taking with the share structure, it doesn’t make it any easier to follow along due to the sheer volume. As it stands, the structure is quite the mess.
Most significantly however, is that it should be noted that roughly seven million warrants are set to expire this week out of the money. Unless the company can manage to have an excellent push at the early part of this week, expect these warrants to expire unexercised. This will be a major boost to the current share structure. Aside from this, be aware that almost all of the remaining warrants expire within the next year. This will cause some degree of selling pressure as they get exercised by private investors, especially as October draws closer.
Lastly, be aware of who options are being issued to, and the motives they may have. There was a large focus on this over the past weekend by investors, and we hope this deeper analysis amongst the community continues.
Hold the companies you invest in accountable. Know the share structure. Dive Deep.
Information for this analysis was found via The CSE, SEDAR, SEDI, and Imagin Medical Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.