WHY warrants powered to all-time highWhat a fantastic perfomance of the stock and warrants today. The $16.80 ceiling over the stock finally fell away, and the stock, after an early drop, powered higher all day on heavy volume to close at all-time highs. The stock reached $17.51 to close at $17.47, and the warrants reached and closed at an all-time high $5.00.
My first reaction to news of a big stock offering was negative. But then I realized that 1) the company can raise millions of dollars with relatively minimal dilution; 2) the stock is under-valued so it is likely to continue rising; 3) PVG will become part of the TSX Composite Index next month. This will likely cause an additional 2.5-3.0 million additional shares of buying; 4) some shareholders are front-running (so to speak) this information, and buying the stock now in advance of index-related buying; 5) The sale of PVG shares may be spread out over time and accordingly have minimal market impact; 6) The sale of PVG shares may be strategically placed with new and strong institutional hands which want large blocks of stock without going into the market to get it; 7) The sale of PVG shares may be done with little or no discount to the market; 8) The offering does not (yet) have a unit (stock) price, allowing the price to continue up at least awhile before setting a price for the offering. We don't know when the price will be set. Meanwhile, the stock continues its advance.
TC
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