You were right to be concerned
Have to admit when I'm wrong. I don't understand why they're raising more capital at such a terrible price, but they have. I can only hope that they're anticipating a big uptick in business and felt the need to have more working capital. That said, they should grow the business first and exhaust other non-dilutive sources of capital. The goal should be to maximize valuation not dollars raised. This company seems to have it in reverse at this point.
I emailed my strong concerns this morning to a Board Member. Kind of moot at this point, but I just couldn't let my frustration continue. Fortunately, I sold half my position in the past few days to buy some other stocks. I will look to buy this back (I suppose fortunately at a lower price) as I still believe in the growth outlook. That said, management has zero credibility at this point and must generate revenue growth as reactions to PRs, save for a possible deal with another large insurer or expansion into Europe, won't be met with much enthusiasm.
I'm not sure this is a good thing, but they did add Roth as a financial advisor. Perhaps that means that Roth will launch coverage or maybe there are M&A opportunities that they are considering. Time will tell.
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