RE:WHY?Geez... okay just for fun...
The issue is to meet the up listing requirement, because that's how it's done. You gotta show you can raise funds via prospectus right before you list. Maybe you're new to the stock markets?
They didn't get to set the price, the investment banks did. As a net new company to the big board, the IBs have the leverage, so the IBs picked the price. That will change once they get to the board and want to do future sales, then Peter can set a price.
It's better to raise shares now, get it out of the way WHILE THE PRICE IS CURRENTLY SUPPRESSED (
likely at the behest of the investment banks who insisted on a lower current stock price first, in order to maximize their own profits), then list and announce torch deals. They likely want to release the torch news once either 1/ they are on the radar of people who know they are up listing, or 2/ once they have uplisted, where trading volumes will be massively higher and share price can go up more exponentially. Why waste that news down on the venture exchange when it can be done on the big board volume is massive and WHERE INSTITUTIONAL BUYERS CAN BUY THE STOCKS?
fdfd12 wrote: I don't understand why they have to issue the shares now at $3.60 for $5.7M.
If there is a BIG order coming, then why not issue the release and let the stock go to
$10 like you guys say. Then issue only 500,000 shares and get your $5M!
Why issue shares at a when the stock is $4 when it will be higher with the BIG order.
Can anyone explain me this?
In the stock market, everytime a hot stock runs up to high levels, that is when the CEO
issues shares NOT when we are at the 3 month low point.