Jason N Q&A regarding Dilution and PPS: Jason,
Post# of 30028
Jason, can you touch upon whether or not the dilution of this company and questionable financing deals with the likes of Dominion capital are key problems that are keeping this stock under 10 cents?
Reply
Replies
NapCFAMarch 4, 2015 at 10:57 AM
I don't think I would call their financings "questionable" - you take what you can get in this industry and Amarantus is an 8 cent stock so what they can get may not be all that rosy, but it is certainly better than going out of business. I see several companies stagnate for years because they think their stock is worth so much more than it is trading for and will not do cheap financings. Amarantus is certainly not stagnant! I think Gerald is very pragmatic about financings. He understands the company needs money to advance its programs, and in the end its the programs that create value.
Yes, I think dilution is keeping a lid on the shares but that is because there has been little data with respect to drugs like ESS and eltoprazine. They need the money to generate the data. If the data are good, then it will not matter if the share count is 900 million or 1.1 billion. The stock will go up.