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emdyal

05/27/18 3:27 PM

#16372 RE: caryPT #16371

Unfortunately when some of these companies begin to show a little success on the stock market they begin to get a greedy to raise additional cash whether its actually needed for organic growth or not !

They begin to do things like selling millions of warrants at a reduced price- like lets say 75 cents a share and the buyers can only sell when the share price is $1 or higher.

What that serves to do is when the SP hits $1 all these shares get dumped on the market which of course caps the price !
Not saying this happens in all cases but the chief executives then like to increase their base salaries and pay themselves big bonus cheques !

Not saying that Aurora executives are doing this but I have seen it done very recently ( early as last week) with other MJs
.
Common shareholders and investors have very little control over this and in many cases these kinds of cash raising tricks are so sophisticated that they are not always understood !
In the case of warrants and the straight up issuance of additional shares, which are dumped on the markets the shareholders are hit with dilution and share prices being capped and destroyed !