TSXV:WMG.H - Post by User
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RawSiennaon Feb 07, 2023 2:08pm
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WMG has been to the teat of Alpha Capital Anstalt twice now
WMG has been to the teat of Alpha Capital Anstalt twice now Posted on February 19, 2021
Alpha Capital Anstalt....
Alpha Capital Anstalt has earned a reputation as one of the world’s most prolific and ruthless investors in cash-starved small-cap companies. Its stock-in-trade are bridge loans and private investments in public equity (PIPE) on terms that are highly unfavorable to desperate issuers. Its favorite instruments are convertible promissory notes, convertible preferred shares, and warrants with anti-dilution provisions and registration rights. As long as issuers remain solvent and honor their agreements, Alpha’s investments typically generate handsome returns for the firm while diluting previous investors, increasing a stock’s float, and putting downward pressure on a stock’s price.
Full article here... https://theactivist.news/free/alpha-capital-anstalt/#more-6558 End of article here...
"Companies that raise capital by selling dilutive instruments often enter a
multi-year death spiral. With the specter of unexercised warrants and unconverted debt hanging over them, it’s hard for them to attract interest in public offerings.
When they inevitably need more capital, they must return to the same toxic lenders and investors and sell more dilutive instruments on even less favorable terms than before. Over several years, a company’s balance sheet and stock price can deteriorate beyond the point of no return. Several such companies appear on our list of Alpha’s investments.
We urge investors to exercise caution if they see that Alpha has invested in a company they are researching. Look carefully for outstanding warrants, convertible promissory notes, convertible debentures, and convertible preferred stock, all of which could quickly expand a company’s float, dilute investors’ holdings, and depress the company’s stock price. If you have traded or invested in securities owned by Alpha, please contact us to share your experience with fellow investors."