In October they rolled out negative news about the study, which caused the stock to collapse and thus they had to raise capital at firesale prices. TODAY, they announced positive news in the morning which sent the stock flying (showing belief in the company). The stock went as high as $1.44 today. These guys are fools for offering financing at .65 cents per share. They put this news out today. They saw the markets reaction to the positive news. They should have waited on releasing this news and reformulated their game plan.
Yes, it is necessary to raise capital, but do so in a responsible manner. They left shareholders out to twist in the wind by offering at .65 cents per share. The company is worth over $1 per share EASY if they had just waited another week to finance this deal.
GREG LEA ONLY OWNS A FEW THOUSAND SHARES IF THAT. HE HAS NO STAKE IN THE COMPANY. HE MAKES SEVERAL HUNDRED THOUSAND A YEAR.
THIS FINANCING WAS NOT IN OUR BEST INTERESTS AT THE RATE OF .65 CENTS PER SHARE.
I appreciate your reply - 5 stars for you. And I agree with your assessment - however, allow me to believe than back in October, the financing at $0.80 had been arranged before the day when the stock tanked from $5-6. Such a transaction is not written and closed in a matter of hours.
By the way,
1) the time of announcing the financing was exactly the same as today (3:40 PM), and
2) the amount of financing was exactly the same - $4.8M