Well This Is Exciting OK it's not exactly the $270 million Plume just raised but hey it's not nothing either.
I love the positioning. Management and Directors leading the raise. As you would expect no indication what they are contributing. They'll let the market get all excited they are participating. If they only pony up a token amount no one knows until they have to submit the insider filing. It's pure genius I say.
It's a mixed bag with the size and share price. $800k is nothing but a caretaker raise. They previously stated they needed $1.5M to get the ball rolling. The allocations, which I don't ever take seriously, seem to indicate the tape out project isn't happening. For a product that's already the best in the world they seem to endlessly spend on development. When is the cake finally baked? You have to eventually pivot to building a company with employees.
The share price is a victory. Pumping out the repeat news helped keep the price up so they managed to get a higher price than the .05 they had on the table. On the other hand why do they need to price the shares 15% under market? The "tremendous" response to the news is "we still need a discount"?
Overall, I'm afraid to say, the sum total is hardly a win. They've had months to market the big news and get investors on board. Yet the raise is simply enough to keep the existing engine running. I suppose the optimist might opine they have big news afoot and want to wait to do a PP at a higher price. I'm not an optimist. Plus based on all the hype they pump out investors should be lined up around the block to get in.