Verb Technology Company Inc (VERB)

[TenKay]

All it does is increase the supply of stock. If demand still exceeds this new supply the price will go up...just not as much as it might have without the offering. But the problem that will come home to roost at some point is that the growth of the OS is much much higher than the growth in revenue while at the same time the negative operational cashflow is getting more negative.

None of that is sustainable so it could put a lot of downward pressure on the stock at some point. It also depends on what the “offerings” look like and how much is needed to simply fund operations versus making an acquisition.

And there is so much “hidden” equity the OS could no longer reflect the true capital structure of the company between the warrants, options and convertible preferred stock. The metrics on a “fully diluted” basis will start to look really bad.

Then there is the fact that they leave the door open to convertible debt as one of the options...that wouldn’t be good either (especially if it is in any way floorless).