share price I can't believe there aren't more angry people posting here.
The CEO does a road show for two weeks telling people about all the good things coming. The stock goes up 60% from .33 to .54, then instead of doing a 4 month hold financing, for some inexplicable reason the company does a bought deal with free trading shares. This enables the people who buy the financing to sell it immediately then keep the warrant, so that if the drug works, they will make a fortune without taking any risk.
Meanwhile, the poor suckers who helped the share price go up based on the song and dance done by the CEO on the road show realize they were being used just to get the share price up for this financing, thus resulting in the stock getting sold immediately down to below the financing price, which was 20% below the market price the day before. However, not only did the stock go down to the financing price, shorted by the two bit institutions who bought into the financing, it is now being sold by the people who bid up the price before hand, who are really pssed off that they were used to get the stock up in the first place! So not only is it not below the financing price by 5-10%, which is normal in a micro cap financing, it is down an extra 25% because the retail investors realize they were used by the company and now no longer trust the company, and are justifiably angry, so are willing to sell at any price, at a loss.
If the company had half a brain, they would have done a financing with a 4 month hold period. This would not have enabled the small time funds who bought into it to immediately short their shares, and would have helped create a market for the stock. In addition, by doing a prospectus offering, the company paid an additional $100,000 in fees.
So not only is the stock free trading, but it costs more to do it that way. Well done Andrew! If they had done a 4 month hold type financing, it is likely the stock would have not gone below .45.
So if you are long from before, you should be angry the stock isn't 50% higher now. If you were unfortunate enough to have bought over .40 in the last few weeks, you should be doubly angry.
I would encourage anyone to call the company and express you anger, and insist on them doing some secondary work to support the stock, to bring it back to at least the financing price, instead of only trying to promote it when a financing is needed!