RE: RE: Anonymoussthe actual way it works is once they contact broker... the broker starts to sell (usually short) driving the price down and then they ultimately cover with the pp shares. So what ends up happening essentially is that any recent shareholders have done the bulk of the financing and the brokerage house gets to keep difference between selling price and PP price, plus their usual fees etc. So usually months before a financing of this size there is a whrirlwind of news releases and other misc. pumping so that there is a market to sell in to. Probably some of the big pumpers on this board are affiliated with the brokerage houses. Now this stock is going to tube until they can find someone else to fill up the rest of the placement. There will be a great gnashing of teeth and bitching and complaining (for good reason) as our company is prisoner to the brokerage houses and the sleezy vse regulators.
But bottom line is that we need the money. We can't get a loan for that amount of money without cash flow. So as smelly and as sleezy as the whole process is (again mainly thanks to the useless regulators) there you have it.
Onward and upward....... but not after a long pause coming up.