Impact of flow-thru placementssI noted the latest are non-broker private placements. Pretty sure Canaccord and Leeds are still mad being taken for a ride on the last $10 million "bought deal" private placements that went poop.
Their high-net worth clients bought in at $6 & $6.5 last Sept. and got clobbered.
Why are flow thru shares generally bad for stock price??
(a) The buyers take their 100 percent tax write-offs.
(b) Most don't wait for the 4 months plus 1 day jail break or hold period and sell right away.
(c) They can do that by shorting the stock and wait to cover or deliver the shares after the hold expires.
(e) Likewise, shares donated to Charity will likely be sold since those organizations just want cash and not shares.
There is usually a great deal of dumping going on after each such deal is done.