ESDI: Public offering and NASDAQ listing announced
By Ian Gilson, PhD, CFA
NASDAQ:ESDI
The Company (ESDI) to raise about $5.4 million before expenses.
The company has announced the pricing of underwritten public offering of 1.2 million units consisting of one share of stock and one warrant priced at $4.50 a unit. This will raise $5.4 million before offering expenses. The warrants will have an exercise price of $5.40 and will expire in five years.
This offering will be sufficient for Eastside to be listed on the NASDAQ Capital Market. Such a listing allows the stock to be purchased by money managers without filing a "sophisticated investor" letter and is very positive for the stock.
Our valuations are based on market capitalization. At the prior target the market cap. was $30 million. The new target price of $7 a share is a market cap. of $31 million.
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