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DragonWave Inc. Message Board

  • hageneriksson hageneriksson Sep 17, 2013 4:04 PM Flag

    offering obviously couldn't been placed at the original conditions

    needed to increase the number of warrants issued by 50%... would expect the offering to price deeply in the hole - perhaps at $2.10 tomorrow morning

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    • nailed it !!!

      the offering dilutes current holders by more than 30% immediately with potential dilution above 50% if accounting for the free warrants issued by the company. So prices around $2.25 should be uses to exit the stock.

      Moreover the cash from this offering will be gone completely after two more quarters so I would expect the company to come back to the market (if still possible) six months from now - and I guess the share price won't be any higher than. The company is in a death spiral right now and won't get on its feet back again.

2.61-0.19(-6.79%)Sep 26 3:59 PMEDT