"I always find the reaction to this kind of dilution as mind boggling.
A group of investors is willing to invest $4.5M dollars in the company because obviously they see the potential now of the company to really get fruition and the shareholders panic to sell like it is going out of business.
Someone please try to explain the rationale? " …………………………………………………………………………………………………………………………………………………………………
I think what some people may worry about is that whoever bought the 9 million shares at 50 cents a share may dump them. The deal hasn't cleared yet but if the price stayed at 65 cents they could slowly unload them and make money on them. And then after that hold 9 million warrants they could cash in later at 70 cents - when the stock price has risen into the dollars range. I personally would hold everything if I were them. and I think they will But someone who doesn't believe in the company - not just this one, but any company - could do a deal like this and make their money back plus profit and still hold low cost options.
I don't that is going to happen in this case. This stock is a steal at this price.
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