RE:Here's a proper def. of the situation... Not Random's guessIf you think they dedicated their limited time and financial resources filing the perspectus "just in case", you really shouldn't be buying and selling stocks on your own... anyone who believes a cap raise is "optional" for Namaste in the next 6 months, is really setting themselves up for a letdown. Please, for all that is good, accept that it's coming and you won't be disappointed when it happens. The only thing that stops a cap raise is Q3 or Q4 hitting $30M+. If you think that's a reality, again, see my first point about being a self-directed investor... I bet you all hate me but inside you're saying "ya i really dislike what he's saying because i'm emotionally invested and upside down on N but it's all realistic and the ODDS are that this is what's coming."
Ninjabujinkan77 wrote: Why Does a Shelf Offering Matter?
Shelf offerings give the company the flexibility to get the paperwork out of the way now and then offer the shares only when it needs the cash or only when the market conditions are good. They also signal to investors that the company intends to raise capital for new projects, possible acquisitions, or maybe to refinance something. However, companies aren't the only entities that can do shelf offerings; they can also involve founders or other managers (such as venture capitalists) selling all or a portion of their stakes in a company. Shelf offerings thus give these shareholders a way to monetize their positions.
Shelf offerings can dilute existing shares considerably if the offering comes from the company because new shares are being created. Selling a large volume of shares all at once can exert downward pressure on the stock's price -- a situation that is exacerbated when the stock is already thinly traded.