RE:OverreactionMe too, have not posted here for quite a while.
When I read yesterday's press release, I found it quite inappropriate that they did not specify the number of units for the offering. They came out again today with another release shortly after market open and specified the number of units, but it turned out to be too little too late, some psychological damage was done already...
It does look like an overreaction. The company currently has approximately 104 M shares, and they are offeing about 7 M, therefore the dilution is quite minor. This price drop from 1.21 to 0.78 is indeed shocking, especially given the 1.05 subscription price. That said, the market sentiment is negative right now, and the news was probably bad enough to trigger some panic selling.
Is it a buying opportunity? Possibly, but one needs to be careful in this market. I did buy a few shares today, but not a lot, and it closed lower than my purchase price. I may average down in coming days, but I am not in a hurry, it is hard to predict where this stock will find a bottom in the current market.
This is how I see it, what do you think?