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Re: quester614 post# 4217

Friday, 03/05/2021 10:13:13 AM

Friday, March 05, 2021 10:13:13 AM

Post# of 31473
Quester, Some aspects of that example may well be relevant to the situation with XERI, but keep in mind that wasn't a Regulation A offering. Reg A's are usually priced much closer to the market, and shouldn't normally create such a steep (but hopefully short-lived) drop in the SP. That said, it looks as if the market manipulators have magnified the short-term impact on the SP simply based on the press release, even before any facts about the pricing and other terms were revealed. (Facts that could make the offering more or less attractive, such as possible warrant coverage, lock-up periods to avoid negative impact of stock flippers, etc.) Keep in mind, should additional good new$ from XERI emerge between now and the time the Reg A+ terms are announced, the price of existing common stock could easily rebound. In fact, I could imagine that being a conscious strategy: announce the offering in advance, see how the MMs react, put out more good news, let the market self-correct, and then price the offering accordingly. If so, it might not be the worst idea for some investors to grab some shares while they're still under 30 cents. Just a thought...
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