Bottom line is the company needed the money to keep the doors open ... By that I mean they needed to comply with NASDAQ rule 5555.??? something (read past posts or look at filings)
First they were under the minimum bid rule of 1.00 ... they took care of that by doing a R/S SECOND ... they have a market cap problem which can be remedied by increasing their market cap and/or submitting a plan to Nasdaq ... these TWO stock sales recently are to take care of that problem.
Last ... they owe money to REDPATH and have to make a payment of around 1.1 million I think every month ...should be about 10 payments or so ,but they could pay off early ...
All of these things it seems were necessary to stay listed with NASDAQ plus ... bring in institutional holders ... notice I said "holders" and not "traders" The company is gradually strengthening the shareholder base/the share price and seems to me creating a situation where "we ain't see nothing yet" as far as a short squeeze goes
I'm really thinking now that once all the cry babies get over the BS that occurred yesterday this will continue it's move and I've said all along the price probably should be 3-5 which now means 30.00 - 50.00
However with the 1/10 R/Split and now dilution (dirty word normally)of the shares left outstanding .... going to depend on whether traders/investors will give them a pass on the sale of stock because really .... there are STILL not that many shares outstanding and with the prospects of revenue growing and company said they believe to be cash flow positive in 2017
Kaboom .....
we'll see what happens today but I'm in disagreement that it goes down
I think people will come back to their senses and take it right back up again
This time we go for the 20.00 spot which is only technically 2.00 BEFORE the Reverse split.
Good luck .... Will be watching ... if they have some more good news to share it will be more obvious where this will be going but without any I still think it goes higher.
I don't think people had enough "time" YESTERDAY TO EVEN THINK ABOUT THIS .....and because of the Volume trade halt and closing of the market everyone was left holdin their nuts wondering WTF just happened .... It was certainly a shocker the way it dropped and I don't believe a lot of volume got out the door anyway ... sure enough to trigger the halt but .... the price of a stock is only worth what anyone is willing to pay for it at any point in time .... so since no one really had time to digest what was going on and why ... suddenly the "PERCEIVED" value was much less ... almost instantly the perceived value was 6.75 for those who got the news first and so on. Now.... they should come around and realize this was necessary and only strengthens the company and the stock.
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