RE:RE:RE:Share price
Tommy123 wrote: Well said! They've also hinted that they'll make another royalty acquisition soon. I think part of their strategy to get the share price up before they issue more shares for an acquisition is increase te dividend aggressively. I think they'll have to just pull the trigger now, even if it's not accretive. That may help diversify their holdings, and give the market ease that they have so few holdings, compared to Alaris, for example.
So general question in reference to share issuance for whoever knows.
Is there a way that if the need arises for capital raising that we can ask management to use a rights offering model?
I have anouther company that I own that has done the rights offering twice and paid a special div in the form of a share offer to get and keep money in house for growth. I really like the idea of rights for current shareholders as it gives the current holders the choice on if they wish to become diluted, we get to participate in the capital raise rather than a private placement where an insider or accredited investor gets to make a premium deal while we current shareholders get diluted and we can create our own exciting returns for ourselves. Also there's the fact that this company is not exactly well known and therefore I'd feel it would get more interest and a better deal in house with those that know what we have here.
It takes a couple months to set, run and collect the proceeds of the rights offering, but with good planning I would expect it could be a fairly easy and pleasurable process. And if a rights offering doesn't get 100% subscription then they could go to the public or private market to top up what would be needed.
I would like to see the Rights Offering model used more as I feel it is more shareholder freindly than private placements or general share issueances...