One Theory- Due to new chat upgrades- Qtr revenue may be much higher than expected, potentially resulting in $5-6 stock price surge. Soon the planed Secondary offering will occur to re balance the stock price and hence company gets their money and shareholders are not hurt too. A Win Win for all. I am holding a strong long position on this one strictly on the higher revenue growth model assumption from mobile apps platform.
A 30% dilution is not a win-win by any stretch..If what they do with the money doesn't generate a 30% boost in earnings,then stakeholders will indeed be hurt..I'm a long holder of too many shares
to be that sanguine over this news.