Medicago Inc MDCGF

Share issuance

[mkprovos]

This issuance of shares is great news, especially for longs.  They had enough money to get them through for the next year.  But a smart company looking for a long future takes money when they can get it. 

In case unexpected delays happen on FDA approval, I have seen companies stock plummet hard, then how would they raise cash?  THey wouldn't then, so a prudent company gets money when it can and saves it for a rainy day.

I know we are all hoping there will not be a rainy day, but it is highly likely we will experience it.  And that is the risk the generates he reward for a stock like this.  I have always heard the "well wait until share price is higher so I do not have my share price diluted".  I expect the company will be moving full steam ahead in the coming months, the last thing we need them to be focused on is when is the right time to issue shares,  we need all their efforts pointed at getting approval, crossing all the 'T's and dotting all the 'I's.  I think this stock offering is great, and that much of it is being bought by big pharma, yeah! Once approval comes and they make money they can do share buy back and give us more value if it is needed.  I will continue to buy shares for the next year or so while I can still get them cheap.