RE:Share Consolidation Withdrawal
boneafide1 wrote: Any idea what was behind the company's decision to withdraw the share consolidation?
The news release explained the fund raise but not the withrdawal of the consolidation, other than to say they were not proceeding with it..
My guess is that Neutrisci (or the investor or both) felt that that there would be selling pressure after the RS that they wanted to prevent.
All this would have been discussed with the institutional investor and ultimately discussions would have led to the investor preferring to invest in the current float setup.
For a small company like NU to get $750k at above market value shows a considerable amount of confidence IMO. It's really hard for a company like NU (who has nearly no sales on their earnings so far) to raise funds.
Obviously there's always risk in all stocks but anything below or 5 cents would have to be considered a good buy, as it's below or at the pp.
The investment does come with warrants, but you need to give some kind of incentive to warrant that kind of investment.
You would think the information provided to them gave them confidence that they can get a good return over time.