RE: RE: Market didn't like the news???Actually the prospectus clearly stated that the funds are not required to fund operating losses.
"For the interim period ended September 30, 2010, the Corporation had negative net cash flow from operating activities. The net proceeds from the Offering will not be used to fund this negative net cash flow from operating activities. The Corporation expects that it will be able to fund future anticipated negative net cash flow from operating activities, if any, from existing working capital and cash generated from operating activities. See "Risk Factors" and "Note Regarding Forward Looking Statements"."
Also, one reason for the share price drop is that the private placement marketters are now likely busy selling the shares they've aquired instead of buying more on the open market. There is no doubt this will create some overhang until the fundamentals become clearer.
i.e.
"The Corporation has been advised by the Underwriters that, in connection with the Offering, the Underwriters may effect transactions which stabilize or maintain the market price for the Common Shares at levels other than those which otherwise might prevail in the open market. Such transactions, if commenced, may be discontinued at any time. See "Plan of Distribution"."