interest rate is quite high for a convertible offering and the potential dilution substantial - had never thought they would need to raise money - stock gets a well deserved punishment
Yes, indeed. It goes to show how important it is to bring in fresh new management team with new ideas, particularly when the company is struggling to move forward...
looks like us bag-holders are getting it again-thought this bunch was better-looks like I guessed wrong - sad
Give it time. They have a plan for that money and I am sure it will benefit us. Be patient. Stock will rebound in the next few days
They are buying a Company...maybe a deal that has been out there but not "looming"...its will happen the value of this Company is in the tax losses...we need taxable income to use them.
Done deal, it will happen.
they could have taken on the debt when finalizing an acquisition but they are actually raising money without any reason. No wonder investors don't understand the move.
I would like to add that this might be a great chance for long term investors to enter the stock at a substantially reduced price tag.
they had $75 mln in cash as of last quarter and no debt - with no acquisition looming why the hell did they do this ? I don't get it especially when looking at the disappointing terms of the offering
They don't need to raise money to survive, they need it for an aquisition. Big difference
they explicitly stated in the pr that there is no acquisition looming. They just borrowed money at the expense of existing shareholders