It’s a 5% Dilution! Anyone who sells at opening is a a fool Funny how the leaches come out of the woods as soon as a private placement comes out and try to scare people to give away their shares lol You would have to be a complete sucker to sell at a loss come the morning and here is why:
1 - Private placements are always negotiated ahead of time and are never based on a future share price. The .17 was probrably what the going rate was when it was negotiated. Good for the people who are buying in to the placement, makes no difference to the rest of us.
2 - Do you really think the companies market cap is going to fall 50% because they raised a million dollars and issued 5% more shares. I have to beleive that no intelligent person would beleive or fear that
3- The companies market cap is still grossly undervalued compared to their competitors. They announced plans to increase operations earlier so if this money helps acheive that then the upside substantially outweighs the 5 dilution.
4- If you still beleive in the company and the industry (which is the hottest industry on the planet right now) then you should be viewing this as a 5% dilution which if applied means a drop in market share price of about 1 cent.
don't be a sucker and sell tomorrow morning at a discount, but if you do I will be there to buy them!