Jul. 10 at 3:58 PM
$AIRI $AIR Industries
$AIRI AIRI currently has about 3.6 million fully diluted shares. It also has about
$26 million in debt. Assuming it could get
$3 per share in an equity raise, it could obtain
$30 million for a cost of 10 million. The advantage to doing that? Elimination of debt. AIRI is currently operationally cash flow positive. If it were to eliminate its debt, and thereby its debt service cost, it would be overall cash flow and earnings positive.
My belief: If AIRI were debt free, it could grow much faster and would support a much higher price multiple. With 2026 positive sales of
$60 million, and a 3.5x sales multiple, the market cap would be
$210 million. With 33.6 million shares outstanding, that would be
$6.25 per share.
In sum: I would support a raise of
$30 million at
$3 per share. That would clean up the balance sheet, relieve the company of debt service, and provide the basis for much more rapid growth.
