The affect the increase in shares can do to the stock price. Why in the world do you think the stock has been static since that announcement? Just coincidence? Look at some case studies, if you have to. Here's one good one: SIRI. They issues WAY too many shares to get Stern on board and the stock price plummeted. I agree, nothing will happen until the shares are actually sold and in the float, but these theories I'm hearing about them issuing more share to attract the institutional investors is just absolute nonsense. Companies do pro-forma cash flow analysis in some cases a couple of years out. If they're looking at that and realize they MAY be out of cash (not for sure, but the possibility is there), they will want to have access to cash by a new issue. That's it, plain and simple. I'm not saying they will HAVE TO use them, but they may. I can assure you that, at this point in their company lifecycle, they do not care about attracting big institutional investors. They are concerned with making their technology work. Every thing else will fall into line. And, for you fools that jump to "ignore" someone, go ahead. I am long, but this deeply concerns me.
I dont think you're over it yet. But who cares, you guys make for some entertaining reading! Keep it up, but the threat of violence does detract a litle from the comedy. Now, who's pussy is in which mirror? LOL! -rbf
Agreed Cheese, point taken. The fact that they are also calling a Special Meeting for just this issue and not waiting for the Annual Meeting also concerns me. Aside from that though, I believe in their technology and will therefore remain long. GLTA and continue to post.
Cheese you have a legitimate concern but it all depends how these future lots get distributed. If they become a private placement all at once sure doubling the # of shares at the current price wiil decrease SP by half. But what would be the point to such an exercise? Neither the new investor would appreciate that happening to his newly acxquired investment and shareholders would be VERY UPSET! Future impression of this company would be tarnished. If on the other hand shares were issued as future dated warrants very little impact would take place and given that larger players tend to hold onto shares longer than the day trading cycles we've seen in this stock to date could bring stability to the long term SP. So far Siga's management are credited to how they've conducted themselves so I have no deep concerns as to their intent with this future dirrected proxy. When the SP rallies and holds I don't feel it a bad thing at all in fact welcome the idea as an increase to bottom line and further expansion capital. Smart institutions want in and if the company was a scam such deals would not be currently entertained. The Rocket!