Replies to post #174014 on Verb Technology Company Inc (VERB)

[JR30]

Presumably, this would suppress the pps until gains or a positive filing of accretive activity occurs, correct?

If it is supposed to suppress the pps, then it's failing.

[Real McCoy]

I wouldnt call it "suppress" as that implies someone or something is actively trying to hold it down, which probably is not what you meant but that idea has been floated from time to time. Technically, the upcoming raise is already priced in as the market is expecting it. So today's resiliency in the price is good news. If the amount raised and/or the discount required is higher than the market is expecting, then yes, that would probably cause the price to drop. Dilution from the raise could cause a drop also. If the terms are better than expected, that could even see the price go up. I think a positive filing could see a significant price increase because expectations are somewhat low, and real traction in this sector would be met with a lot of interest.

[TenKay]

All it does is increase the supply of stock. If demand still exceeds this new supply the price will go up...just not as much as it might have without the offering. But the problem that will come home to roost at some point is that the growth of the OS is much much higher than the growth in revenue while at the same time the negative operational cashflow is getting more negative.

None of that is sustainable so it could put a lot of downward pressure on the stock at some point. It also depends on what the “offerings” look like and how much is needed to simply fund operations versus making an acquisition.

And there is so much “hidden” equity the OS could no longer reflect the true capital structure of the company between the warrants, options and convertible preferred stock. The metrics on a “fully diluted” basis will start to look really bad.

Then there is the fact that they leave the door open to convertible debt as one of the options...that wouldn’t be good either (especially if it is in any way floorless).