Q: What do I do with Anaergia? There has been a major restructuring of the capital and I sense that my old shares are no longer worth so much.
5i Research Answer:
The restructuring brought in $40.8M, but now one investment entity owns 60% of the company. It gives the company money to survive, but it may be a while before it prospers. Of course, issuing 102 million new shares (at least, with 20 million more if warrants are exercised) caused massive dilution. Even with the new shares, the company's market cap is still very small. Down 77% in a year, the (now) tight control of the shares may keep larger investors at bay. We think the best strategy is to move on from this. Cash flow remains highly negative.