33.925ml new shares with overalotment$4.42sh=$150ml
FOE said the gross revenue from offering would need to be $150ml dollars.They need a minimum of $4.42 per share to reach the $150ml gros proceeds.I hope it is more than $4.42 a share but they will have to give a big discount with the dismal quarter they just reported.
Unless I am missing something, I'm not so positive this is a sure thing. Stock dilution is the issue. If you add over 30 million shares to the 40 million already out there it will cut stock price subatantially - won't that make the value of those $6 shares closer to $3? In that case they won't get to $150 million?
This is comlicated and maybe I don't understand it completely. Do others with better knowledge have any idea?