Interesting, finally something of substance and a decent complementary business to merge with. Much, much better than a body shopping IT consultancy with a business model from 1990 that will go the way of the dodo.
Although, there is massive dilution at the current market cap and I think there will definitely have to be a capital raising at some point (probably within the next quarter). Even if the business being acquired is cash flow positive, Alcidion seems to be burning through cash at an extraordinary rate with the same estimated outflows for next quarter. $1-1.5m cash doesn't leave a lot of wiggle room for a medium sized company with ~100 employees especially if the company wants to be aggressive in a competitive, slow moving market and continue to grow.
Very decent acquisition, the lesser of any potential evil. Another positive is they can save money consolidating the jpgs on their respective websites since they seem to come from the same generic health set. More doctors with arms folded and stethoscopes over their shoulders, less clipboards please... this is 2018.
ALC Price at posting:
3.7¢ Sentiment: None Disclosure: Not Held
