Further invest or not?

I have a question about how I should approach the following:

Two years ago (Oct 2017) I purchased 144,445 shares at $0.45 in a private wine trading company. Financials were as follows:

• Current revenue $3.2M PA
• Projected EBITDA $0.3M
• Market cap $14M
• Current share volume 45M

A year and a half later, it became a bit of a mess due to poor governance and financial oversight. I don't think there were any acts of impropriety or wilful negligence, but likewise, I don’t believe that appropriate governance was maintained.

They had to do a debt restructuring, enter into debt conversion agreements, and issue new shares to raise capital. This caused the value per share to be reduced by a factor of 45 (shares are now being offered at $0.01), while my equity stake has been diluted by a factor of 3.

Anyway, they've cleaned up all the issues, there is much better financial oversight, and
I have the opportunity to purchase shares at the $0.01 price. I'm willing to invest $5,000, but is there anything I can do to negotiate a better deal?

 

Why do you believe this is a better opportunity than others?

A market cap of $14m with 45m shares outstanding should have been a price of 31.

 

welcome to InvestChat ,

did the company change ( any ) management ??

or will it after the cap. raising ?

often the underwrter of the cap. raise ends up with the biggest slice of the offered shares ( and gets seats on the board if it wants them )

SECONDLY will that forecast EBITDA include the inflows from the cash raising ( don't laugh i have seen it done before in an ASX listed company )

i suggest a DETAILED read of the prospectus ( maybe even twice or threes times .)

please think carefully

cheers