Dec. 11 at 4:26 PM
$WRD Tony has 3 weeks left to call the UBER
$100MM investment. This will be dilutive. Weeks ago I wrote the avg weighted share price could be around
$7.50 per. That will add 13.33MM more shares. S/O will still be below
$PONY share count and WeRide will have
$100MM more dollars. The dilution of 12MM to 14MM more shares doesn't bother me. The lower weighted avg does.
Unless UBER wants to wait and get it done at a higher price with fewer shares, they should do it soon. Greed is greed. UBER wasnts more for its money, and you would too on
$100MM.
The best I can tell from reading the filings and using google the deal it is a subscription agreement, so this means newly issued shares. The investment involves subscription to newly issued American Depositary Shares (“ADSs”),
13MM is small.
WeRide has about
$1.1B between US and HK IPO in cash/equivalents then add another
$100MM from UBER.
WeRide will have ample cash to do what it needs to. Now maek WRD make sense.
