Value Microcaps Motherboard

[southacresdave]

lol...you're assuming his presumption is correct! Maybe the CEO just wants to expand RIGHT NOW and doesn't care about diluting the stock to do it. Explaining this deal for "better terms for refinancing" is just a guess to make everyone who owns the stock already feel better. Doesn't mean it's true (doesn't mean it's not either).

Is it a bad deal though? Based on the closing price of $1.40 yesterday it is. But that's rather irrelevant. It went from $1.16 to $1.40 on 250K shares over 4 days. Out of 27M shares, those 250K don't get to set the price of the deal. The 50 day moving price is $1.16. The 200 day moving average is 99 cents! Based on that it isn't that much of a discount for a micro-cap company.

More explanation is needed during the upcoming CC call. That's the time to ask if there is the possibility of additional dilution to close on the upcoming refinancing or does the company think that with additional capacity/expansion/capital expenditure that they can swing it as is.