RE:RE:Hydropothecary Announces Upsize of Previously Announced OffeDilution is typically worthwhile in a growth industry (cannabis is one of the major growth industries currently). The use of the new finance will help companies in such growth industries to further expand their capabilities so that they can quickly become leaders in their industries. If HYDRO uses the money to build new production facilities so that they can produce enough to penetrate into international markets, I’ll say the dilution is very worthwhile.
If HYDRO can only get $20 million of financing at a huge discount of 50% of current stock prices, I’ll be extremely worried. It means the company has trouble raising money for their operations and growth. At the same time, it likely means that the company’s life is approaching its end, and is raising money just to keep its skeleton operations running (ie running in fumes).