RE:RE:RE:RE:Another runup In the past,
this company has not required shareholders approval to issue shares. We read about it when they issue new shares, or we read about when they get an ATM prepped.
This time they are requesting to issue a greater amount of shares than 20% of currently issued and outstanding. Nasdaq regulations requires shareholder approval this time because of exceeding that threshold.
Getting approval ahead of time does give management the ability to strike when the iron is hot by having all the ducks lined up in a row and everything good to go in regards to acquiring assets. It is never a bad move for management to be prepared. Just how big of a war chest do they actually need or are they going for?
If they had 1 strategic investor coming into the fold, it would please me.
It was very apparent that short sellers would jump ontop of it today. Took some shares off the table, not lots. Got rid of $20 OTM Calls and held $5 and $10 ITM Leap Calls.
Will reload what I took off, when I see fit.
cheers
momo
wideopenthrottl wrote: aren't they simply putting some shares in the bank for later if needed to snatch up a good deal...it would seem almost silly for a company like ours to not have a few extra shares ready to take advantage of industry consolidation or the like....I have seen other companies ask shareholders to let them increase available shares at an AGM but not use them at all....I would have thought you are probably more experienced with this type of share increase than I so maybe I am missing something momo?...GLTA
CommonCentsforDollars wrote: They buried it in the "Forward looking Statements" at the bottom. Take a look again. However the NR doesn't provide too much clairty when they also state:
this proposal would authorize additional shares of our common stock so that we can move quickly to accelerate growth through potential acquisition and financing opportunities. Importantly, approval does not mean that the authorized shares will be issued, only that they are available if needed in pursuit of these important corporate initiatives to drive shareholder value. Clear as mud.
Dilution wouldn't be so bad if they had ONE interested company to take the full dilution on. But if it is some money raise like ones in the past with a boatload of insitutions then I am not impressed.
eom
momo
Relaxrelax wrote: Weird letter to shareholders, it doesn't even state the amount of new shares they want to issue.