Co. issued 10M shares at US$0.20 per share in September and is now diluting by up to another 35M shares at US$0.22 per share. Market appears to be viewing this as a good thing even as number of shares swells by 75 percent. How so?
Despite improving business prospects and recent desal project win from American Water, share price will continue to fall as those able to purchase shares at significant discount to recent trading prices cash in their shares. Share price should stabilize at book value in the $0.20 to $0.25 range.