http://seekingalpha.com/article/206271-dilution-risks-in-emerging-energy-storage-companies?source=email
A hint of what he says:
"The greatest truth in microcap corporate finance is that small companies have a lot in common with small children in third world countries – they rarely die of starvation but they frequently die of dysentery. In hard times, small companies that need additional capital can usually find the cash if their management has enough humility to accept the price the new financiers are willing to pay. The problems can quickly become life threatening, however, if management fails to adjust spending to accommodate business conditions or rejects available financing because the terms seem predatory. My advice to clients has always been "take the money when it's available, even if you don't like the terms, because shareholders adjust quickly to sensible decisions but they rarely forgive failure."
Last December a former client Axion Power International (AXPW.OB) found itself with a Hobson's choice because it needed substantial financing to pursue its development plans and the price the new financiers were willing to pay was painfully low. Management made the right decision and sold 45.8 million common shares at $0.57 per share, which was a big discount from the prevailing market price of $1.58 per share, but worked out to roughly 5.7x the company's adjusted pre-financing book value of $0.10 per share."...........
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