NanoTech Gaming Inc (NTGL)

[DueDillinger]

It's reasonably simple, PW. Because the price was so low, and the shares were probably sold at a discount (as with most equity financing deals) it took billions of shares to raise the amount of money that was necessary. The issuance of billions of shares was dilutive, and the result was a normal price decline for that reason. Furthermore, the buyers of the shares probably understood this, and shorted against the shares to lock in their value.

If the price had been higher to start, proportionally less shares would have been issued to raise the same amount of money. This would have been significantly less dilutive and would have resulted in a smaller percentage decline.

Why didn't Hilal publicize his successes to raise the price? Perhaps he was advised that the SEC really frowns on false and misleading press releases.