Thanks. My own views on proper valuation aside, I am seeing $1.20 - $1.60 as a reasonable pre-RS range that can be achieved from less than half the news that can be released. That can be boosted even further with buying by larger players who are now rumored to be taking a closer look.
While there will be a discount from the offering that the market may well gravitate toward, I don't see a need for it to 'absorb' those shares once the offer occurs because I see those shares as (possibly) not being sold to retail - but rather bought by large retail investors at a fixed price which is high enough for AGP and their brokers to make a profit - and held by them.
So it seems to me that the argument for a drop is most likely valid as it pertains to the price of the stock at the time of the offering - ie it will gravitate toward that price, but news prior and after the offering is announced can offset the effect or even push the stock higher if the resulting buyers are already lined up and are not planning to sell into the market.
If that scenario isn't even possible due to the logistics, please set me straight. Thanks again.
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