FormerXBC Inc XEBEQ

RE:RE:RE:The last public disclosure from Xebec before this

[AlwaysLong683]

tamaracktop wrote: No! I didn't expect them to say "This company's f*cked. Run for you lives!!!" when they announced Q2 on August 11th. I would have expected a well-timed secondary offering announcement shortly after that. They knew what was going on and the stock DID trade as high as $1.01 on 1.7 million shares 2 weeks after the quarter was announced. 60 or 70 million shares at 65 or 70 cents would have solved everything and then some, and we wouldn't be in this fu**ing mess. What the fvk were they thinking?

Perhaps they couldn't find suckers (I mean, a PP buyer or underwriters) willing to take the shares, as they may have been wise to XBC's predicament and did not want to sink money into the company or try and sell the shares to clients of theirs - why damage your reputation as an underwriter by selling garbage to your clients...?

I suspect the large volumes traded were mostly speculators / day-traders moving in and out of the company to try and make a quick buck, or bail quick if it didn't work (I assume management doesn't own many shares from what I've been reading on this BB).

Even if we assume there was such a mark out there, the deal's share price (especially when the company offering the shares has been a disaster to date) would likely have been at a steep discount to the weighted average share price over the past 30 trading days (or thereabouts).

If it was that easy to just raise equity whenever a troubled company was in danger of breaking debt covenants or other monetary obligations, no company would enter Chapter 15 as they could just keep this kind of equity raise pseudo ponzi scheme going.