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Re: mtncabin post# 32770

Sunday, 01/18/2015 10:44:39 PM

Sunday, January 18, 2015 10:44:39 PM

Post# of 34093
Easiest way to explain is kinda of like a credit line. There is approved total amount that can be used however only certain amounts will be used at certain times and priced at the market. Term used for such financing is also called "ATM" at the market. The goal would be to use money as necessary to limit any dilution and as the company grows and needs more money they can raise it 'ATM" at the current market prices which the company would hope to be higher again to limit shareholder dilution. There is a brokerage firm attached to the financing so you also get the support from them since they are raising the money and positioning their clients in the stock at the current market price unlike a IPO which is positioned under the IPO price (if its a hot deal).

Send the company an email and ask them to explain it on the conference call this week.