GREY:MWSWF - Post by User
Comment by
snootchybootchyon May 02, 2015 2:41am
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Post# 23687720
RE:With todays deal....
RE:With todays deal....biloshi wrote: wonder if Galena takes this company Private?
Cheers!
This seems to be a possibility. Another possibility is that ramping up Kapulo is costing more than original estimates and by giving themselves a larger percentage of the company, they are increasing their chances for a reasonable return given the risks they are taking by pouring more money into this company. From Galena's point-of-view, they probably see it as a fair trade-off: they are putting up $40+ million dollars to save this company from bankruptcy so why shouldn't they take the lion's share of the potential profits compared to the the common shareholders who hold less than $10 million of distressed equity? From the shareholder's point-of-view, it does seem like highway robbery though. Hopefully more light will be shed for this dilution in two weeks when Q1 results are released.
I was able to sell about 15% of my shares at 7.5 cents a few days ago but now I wish I had sold more. But I don't see the point of participating in the panic selling that occurred today until we know more about Kapulo. Financials are due mid-month and I'm hoping there will be some answers.