I don't get itThe people at E3 are driven to make this project work, it's amazing what they've accomplished and at the same time kept the share float unbelievably low. Having one of the most experienced multinational engineering company, Fluor, do the PFS speaks volumes imo. As does the success of the pilot plant.
However, instead of embracing the media attention and new investors which drove the price beyond $5 they decide they need to do a pp at $3.55. Let's pretend that some of the participants in the pp shorted the stock at $4.55, wouldn't that mean that they obtained their new shares for a value of around $2.55? If this were the case they could sell their shares down to this level and still profit.
If E3 priced their pp at $4.55 and attached warrants wouldn't this mean that the participants would have to wait until the warrants and the company progressed and became more valuable just like current investors have to do instead of what's happening now.
They say warrants cause a depression of the share price at a future date. I got the same impression for the pp prior to this, it doesn't feel like the first time this scenario has played out.
Maybe I'm just stupid because I don't get the advantage to doing this.