Dire StraightsSo, that is even more concerning.
Ucore admitted they have only enough cash to last one month. The rights offering will conclude in October. So basically they are cash poor and needed to raise money again or go bankrupt.
I guess choosing to do a rights offering verses another private placement is slightly better. However, it may also mean they might have been unable to raise needed funds via private placement.
9.1% of 284 million shares is 25.84 million dollars. They need that much money for 1 year of operation? I guess trying to get free government money is expensive.
Someone is desperately trying to sell UURAF at .1229 on the OTC. US rights offer will be at .075. Expect the stock to drop to .11 canadian or .085 US.
Maybe Ucore did the offering at 57% discount knowing the doubling of sharecount would reduce the stock 50%. Holders would still get 7% extra, maybe more with trade variability