Greystone Logistics Inc. (GLGI)

[Phaedrus77]

I’m normally not a fan of dilution either, but interest expense and preferred dividends are 50% of operating income YTD. That might be ok if this was in the “cash cow” phase of its life cycle, but GLGI is in the high growth phase.

The customers are having to partially fund the business (the 2 capital leases on the 2016 machines, the advance from the customer last quarter, etc), which I assume makes it much harder to grow. Interest rates are increasing, etc.

Why not just bite the bullet and raise more equity? With a rights offering, current shareholders wouldn’t be diluted if they choose to participate.