RE:RE:RE:New Press Release - POET Technologies Announces "At-the-Market" Public Offering in the United States and Canadaall ye baggers gather round..lo
the Compny will be dumping Up to 30 Million shares at the market price,.incrimentally as they sea fit..
Unless Poet comes out with Large News,it will for Sure. contribute to agonising downward Pressure on the Market Price.but i suppose they don't have much choice when you are desperate..
Lets hope that the agreement with the Agent will set a minimum Sell limit to market Price..
GltaML
Disadvantages of At-the-Market Offerings
Issuers should also consider some of the disadvantages of ATMs as compared to traditional financings. Due to their “dribble out” nature, ATMs tend to be substantially smaller than traditional follow-on offerings and, therefore, may not be the best option for issuers seeking to raise a large amount of capital in a short period of time. ATMs are still registered offerings and are generally only available for use by issuers eligible to conduct shelf offerings using Form S-3 (or Form F-3 for foreign private issuers) under Rule 415 (17 C.F.R. § 230.415) of the Securities Act of 1933, as amended, on a primary basis. Therefore, an issuer that is not Form S-3 eligible or one that has a thinly traded stock may not be a candidate for an ATM offering. Given the ongoing nature of ATM offerings, issuers should consider implementing controls to ensure that no sales orders are issued or completed while the issuer is in possession of material nonpublic information to avoid violation of securities anti-fraud rules. Furthermore, shares in an ATM are sold at prevailing market prices, so the cost of raising capital will fluctuate as the market price fluctuates. In a down market, issuers with pressing capital constraints may be forced to enter into sales transactions for its shares at depressed prices under its ATM program should alternative financing options not be available.