Kraig Biocraft Laboratories Inc (KBLB)

[es1]

So tell me something Mojo...

T-Mobile US, Inc. (TMUS) (“T-Mobile”) announced today the pricing of its registered public offering of 17,391,305 shares of 5.50% Mandatory Convertible Preferred Stock, Series A, at a price of $50.00 per share. The net proceeds to T-Mobile are expected to be approximately $854.1 million, after deducting underwriting discounts and commissions, and other estimated offering expenses payable by T-Mobile. In addition, the underwriters have an option to purchase up to an additional 2,608,695 shares from T-Mobile.

The shares convert at 1.6 to 1.9 commons per share which puts them already at a loss seeing the PPS is $26.45 That makes up to a 25% loss.
Of course the underwriters took a discount and were able to profit right away as they dumped the shares on the market. And they have the option to dump more later if they want at the same discount.

So I am wondering if this form of financing is so "fake" why are huge companies doing the same thing?