SSI (SSII)

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!