RE:RE:Clarityalphabeta1 wrote: Just added some more to my position today.
If it good enough for at .70 then its good enough for me at .72 cents.
Be carefull don't let some posters but too much doubt in your mind.
My criticism has nothing to do with potential future value of the company. It is simply that SEV decided to dilute our shares at a materially lesser value than what they could have obtained had they been smarter about it.
For the commenter who thought it might have been illegal for the financiers to have seen the books before the public, I have news for you. As part of a bought deal financing, the buyers are well within their rights to see a snapshot of the books as part of due diligence. To be fair, they are not permitted to tip others (hahahaha) , and most bought deals require a holding period that would certainly extend beyond the next earnings release -- of course that might only apply to newly acquired shares, not any legacy holdings they may have had. There would be a chinese wall set up (hahah again) between those working the bought deal financing and anyone permitted to trade legacy holdings.
If SEV goes back to 80 cents, how does that help any existing shareholders? It doesn't, but bought deal parties make 15% on their money.
Diatribe follows, feel free to skip:
To people out there who think that bought deals are good because that's just the way it has always been done, they need to realize that there are plenty of ways the financial industry takes money from the market without providing useful value in return. Everyone just accepts it as so because they don't know better. The fact that the only convertible debt instruments that trade on the TSX are debentures (almost always subordinated) rather than senior bonds should be an indication of how bad the situation is. Non cumulative preferreds should be banned from the main board too.