(Long) The screams have died down and that is a good sign. Trading or investing on emotion is bad news for everyone in the end.
With actual SR (shareholder realtions), a lot of this heartache could have been avoided.
This RS is NOT like what happened in Jan. I entered the market after the dilution and it was clear that it was the excercising of the CASHLESS exchange or warrants for shares of stocks. Unforunately the terms of the warrants lead to a complete black hole in the PPS. Issued shares went from around 5 million to around 100 million (without cash being exchanged). Usually warrants are like options, only issued by the company and the sales generate cash.
Thus, 30 million divided by 5mil became 30mil divided by 100mil (give or take) and the new stock price was cents instead of dollars.
This is not complicated and it shakes my belief in capitalism to the core when so called investors cannot understand this very basic concept.
The latest RS didn't have pending warrants that could severly dilute the company, and they would have generated cash when exchanged. The company then got rid of that of that liability early by swapping 2.6 warrants for 1 share of stock cashlessly. Yes,that was a true dilution, but it reduced the expansion of shares by a factor of 2.6 and ALSO prevented warrants from being excercosed in the future below market and dumped immediately.
This also had an important side effect. It increased shares outstanding, lowering the required PPS to male market cap requirements. Instead of 10.50, it's now only 8.91.
If you don't understand why the RS was done, why the buyout of warrants was done and do not understand why it is completely different than what happened in January, stop "investing" because you are just playing a slot machine.
I do noy agree with the company's path to stay listed. As CEO, I would have stopped the RS, let the stock soar on news, shore up thise gains, got an extension based on MC compliance, and then pursued a smaller reverse split with daily statements about why staying listed and above 4-5 dollars is important for the company.
Unfortunately, the CEO is an introverted mute shutin who doesn't understand human nature. Still, the news has been good and this stock is undervalued simply due to missteps and apathy by management in shoring up shareholdet confidence.
Of course, this is all for naught,as people prefer to believe everything is a giant conspiracy against them, when it is just random actions of panic combined with people looking out for their own interests.
