SSI (SSII)
Published 2026-03-16 • by yetanothervalueblog
Thesis Summary
Bizarre capital raise with three disparate pricing tiers for insiders, retail, and external investors, highlighting significant valuation discrepancies.
Quantitative Overlay
Detailed Deep Dive
SSII had one of the most interesting raises I’ve ever seen earlier this month. They raised $18.6m from two different sets of investors:
* Three insiders (the Chair / CEO, Vice Chair, and a director) bought ~$5.2m of stock at $4/share
* External investors bought $13.4m of stock at $3/share.
However, the external investors could be further segmented, as one of the investors who invested ~$2.5m was brought in by a “FINRA member”, and SSII paid the FINRA member a 7% commission ($175k) plus issued them ~42k 5 year warrants to buy SSI stock at $3.45/share. In 2024, SSI assumed ~25% volatility for their stock options; that seems low to me, but if we use that on the warrants SSII issued they’re worth another ~$100k. So I think you could argue SSII paid ~$275k all in for that $2.5m investment, and thus the net price to them was closer to $2.60/share.
So you’ve got one raise that has three wildly different prices:
* SSII got $4/share from insiders
* SSII got $3/share from most outsiders
* SSII got ~$2.60/share from outsiders brought in by the FINRA firm after you account for fees.
In one transaction, SSII’s stock was worth >50% more from one set of buyers than from another. Crazy!