TSXV:TEK.RT - Post by User
Comment by
quicksilver545on May 18, 2017 10:42pm
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Post# 26262761
RE:mech and king...
RE:mech and king...Wango,
This is a rights offering, not a PP. Rights offerings are a way companies can raise capital from existing shareholders, rather than going to PP for funds. I much prefer rights offerings over PP as they give existing shareholders an opportunity to increase their capital positions without the dilution of a PP. In a PP, all existing shareholders get diluted as the share count goes up, and existing shareholders don't get any additional share.
Also, the warrant is an additional bonus as it gives shareholders additional incentive to participate, and get substantial upside if this thing really takes off. Considering the exercise price is only 2.5c, this is a pretty damn good deal imo if you believe in the direction of this company.
As a side note, I remember contacting one of the company execs over the phone a month ago asking about the rights offering and consolidation. He said at that time that the consolidation would happen upon completion of the offering. Not sure how they messed up so bad with the timing of the consolidation (perhaps it was more the issuer's fault?), but looks like things are back on track. It would be nice to hear something about the progress at the company currently, though.. I agree with previous poster that some positive press releases would do a lot to instilling confidence.