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Re: VisionaryInc post# 58209

Sunday, 04/08/2018 5:45:01 PM

Sunday, April 08, 2018 5:45:01 PM

Post# of 81999
I've been invested in several emerging growth companies. It's customary to raise add'l funds by add'l share issuance and particularly in cases of private placements, which you'll always see at a discount to the current market, the market doesn't necessarily move down to the new issuance price.

There are several possible reasons it doesn't necessarily work that way, in my opinion...

1. It's generally understood that the discounting of shares off of the current public market price is required to get the deal done...Which means that the shares aren't then thought to be worth the lesser, negotiated price.

2. Cash infusion to the company improves solvency and flexibility

3. Vote of confidence by the private investors who may be more sophisticated than the average small retail investor.