Ok, new here but I have a few points to be refuted.
1) People keep talking about the 0.89 share price. That was when there were 170 million shares. There has been a reverse split to the tune of 5 to 1. There are only 35 million outstanding shares now, so an opener of 4.60 was about right.
2) Comparing TWD share price with other MMJ companies makes no sense as they all have different amounts of outstanding shares. ABBTF has 47.6 million, and some of the others have WAY more than that. Market cap divided by # of shares determines the price.
3) The estimated demand for this stock is calculated assuming it is available OTC, which it will be on Monday. The IPO was only available to TSX.V traders. There are a lot of investors who want a piece but cannot get any until Monday.
4) The funding has already been supplied by the underwriter, and they are not desperate to take a bath on this deal. If anyone thinks they will just unload another 10 million shares into a barely liquid market and devastate the price to their own detriment is not thinking clearly.
5) Insider buying was reported @ roughly $52,000. Zero insider selling occurred on day 1. This would indicate that the insiders view the current price as a bargain.
6) The fact that the price declined substantially on the open will lock investors into their positions. Nobody wants to sell something they are down on. This will build a more solid foundation than if everybody got in at 2 and saw it go to 4 by next week. People would dump for early profits. Instead, they are forced to hold. Look at Facebook IPO, and look at the price now.
I have more points but please, if I am wrong, show me where.
