Post by
UglyKidStock on Apr 22, 2021 11:07am
Putting up a Shelf
Is this a smart as a fox move or a signal of danger. This filing gives them the opportunity to sell 40 million in shares anytime in the next 12 months. If management is confident the next 3 quarterly reports will be positive then every 3 months the share price will increase. Say by Sept it is 2.70 and you sell 20 million shares at that and put it directly on the debt. Isn't that a net positive for enterprise value? Say in Jan 2022 30million share outstanding against 54 million less debt? Any one with extensive Finance knowledge care to comment? I could see it as dangerous if the company was shrinking or not profitable. They don't need to sell shares but probably sure as hell should if share price zooms again. I'm holding for 2 years to see how this plays out. It's a gamble but the details seem interesting. The danger would be 40 million shares added for an overpriced acquisition. Intelligent comments welcome.