GREY:ARGEF - Post by User
Comment by
morriconeon Aug 01, 2014 11:13am
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Post# 22802559
RE:Size and minimum dilution
RE:Size and minimum dilutionThe problem is that with the uncertainty of the financing dragging on the stock continues to slide. This guarantees increased dilution as more shares will now have to be printed for the same amount of money. There's not a lot of incentive for whoever's taking the new shares to close the deal. The longer they wait the more shares they're guaranteed to get as the price continues to slide.
If the company management is counting on their negotiation skills to minimize dilution then perhaps they haven't noticed the stock slide from .90 to .60 over the last couple months undoing their efforts.... and a couple more months of this are guaranteed to see shareholders nauseated and throwing up (if they aren't already) ..... and then that added feeling of being raped when the financing details are announced based on a low stock price.
Ah for the good old days when we naively thought that the financing would be in the $60 million range or so with instutions throwing gobs of money at the company because of it's revolutionary process!