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Re: uksausage post# 73490

Tuesday, 07/21/2015 10:49:25 AM

Tuesday, July 21, 2015 10:49:25 AM

Post# of 87250
"so would you rather they had 400,000,000 warrants (which they can't as there is only 300m shares authorized) at 0.25?"

Not at all. I apologize for any miscommunication but I think my point was missed. It sounds to me like we're on the same page.

"it could help with cash flow that's for sure but how would the price go once they hit the market?"

I 100% agree. With a pile of new shares hitting the market, the PPS would tank. That was my initial point. I was just curious what others thought about the possibility of Dan's investor presentation being timed specifically in order to generate new interest in the stock to negate any negative PPS effects from a large scale warrant exercising.

bjdev's point was that the company could repurchase a majority of the new shares that hit the market to avoid a PPS collapse, but I'm saying they would have to use their new cash from the exercising of the warrants to do that because they don't have cash on hand. I don't see that as a likely scenario because i'm sure they would prefer to use the new money from warrant exercise to fund future operations instead of share buyback.

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