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Posted On: 03/02/2019 4:29:22 PM
Post# of 72441
Re: aragon1959 #53535
This is unlikely to happen due to LE's vehement opposition to it. That said, last time he comment on RS we had a significantly higher market cap with a viable financing vehicle in Aspire.
The risk would be that the maneuver would attract more shorts and we would quickly lose much of the stock price increase. This often happens with RS.
There are some combinations of cash on hand + stock price where I would vote for an RS:
$50 million from the upfront on the deal and the stock price is at $0.90 for example. I would be in favor of a 5:1 RS to bring the price to $4.80 with a simultaneous NASDAQ up list. That would enable institutions to buy in and give us consistent support that we don't currently have on the OTC.
If the upfront deal cash is much higher than that I don't think we will need to draw on our stock for financing in the near future. I'm hoping we see $100+ million on the B deal and just let it ride.
The risk would be that the maneuver would attract more shorts and we would quickly lose much of the stock price increase. This often happens with RS.
There are some combinations of cash on hand + stock price where I would vote for an RS:
$50 million from the upfront on the deal and the stock price is at $0.90 for example. I would be in favor of a 5:1 RS to bring the price to $4.80 with a simultaneous NASDAQ up list. That would enable institutions to buy in and give us consistent support that we don't currently have on the OTC.
If the upfront deal cash is much higher than that I don't think we will need to draw on our stock for financing in the near future. I'm hoping we see $100+ million on the B deal and just let it ride.
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