ahpinvestmentz, I am not sure whether I qualify as a "board expert", but I will attempt to answer your question.
"Why do I seem to notice a majority of the time, a huge run up before financing deals are announced? Even when the financing is the kiss of death aka Convertible Debentures."
Imagine company XYZ has set up an offering. CDs are usually convertible at a very significant discount to the market. A financer dealing directly with the company commits a certain amount of money, receives the right to these CDs, and privately agrees with the company that it will release news in order to generate interest (best measured in volume) for the financer to liquidate. If all goes well, this financer may very well like to fund this company in the future. This is more than likely in the best interest of the company.
Now the financer converts stock at a significant discount to the market. The float has not changed at this point because these shares are not "floating" in the market, just yet. The company begins a news release campaign, promoters are hired (either by the company or the financer, perhaps both?), organized groups acquainted with the financer are asked to participate in the market. This is where the run-up occurs. And where smart financers sell stock for a large profit. The cons of this activity are rather obvious: the dilution in the market makes the stock "heavier" and lowers shareholder value...well, that is if there is any to begin with. One “pro” of this type of activity is that the market becomes very liquid. Very tradable. And consequently attractive. Now all sorts of factors have a ripple effect on the market. Round Two? That's when the price retraces to a certain level and the financer either commits to a new round of financing, or converts the remainder of his CDs from his last commitment with the company.
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