It can take up to two weeks for the new board to be activated after a security ticker symbol has been changed. About the same time it will take for Speedy to recover from this one day? drop. It's interesting that the funds raised with this issuance + the cash on hand is almost exactly equal to the dept. It doesn't seem like the people at the top are the type to cut off their own legs but I would sure like to know who the buyer is of these new 7 million shares. I also wonder if management was buying shares today in the open market (not sure if SEC rules prohibit it when news like this is announced).
This is a bit puzzling on several levels and you ask a great question regarding who the buyer(s) are. That would indeed be very telling. My guess is someone wanted in in a big way but didn't want to bid it up and so this was a way around it. Sure seems expensive from SPEED's perspective though since they only get $2.80 per share and the middleman gets .20. And why such an oddball number of shares and why if you are going to the trouble of doing it you only do just enough to eliminate debt. Why even eliminate debt, it's cheap right now, the more the better.....sort of. Whatever. Bottom line is if these guys figured out a way to get TUES to $14 per share they sure as H can figure out a way to get SPDC to $10....I hope.