The Jailhouse

[24601]

Howie: Something is obscuring your vision.

Another poster asked (I'm paraphrasing here): "Why did they place shares from the shelf at a discount? Why not at the recent market price?"

I replied: "At least some of the discount below the recent market price is just the price of moving a multi-million-share block in one piece. If somebody gave me four or five million shares of a stock that usually trades only a few hundred thousand shares daily and told me I had to liquidate them in one day, I have to wonder whether I could garner more net proceeds than Wave received in this placement. My selling certainly would exert some downward pressure on the shareprice. I know it's frustrating, and maybe we should expect them to be able under current circumstances to limit the discount to 10% or 12% rather than 20%. But, generally speaking, it's not a big surprise."

Want to explain how that rates as defending anything?