Here is my take on the last two, most recent press
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Posted On: 12/09/2019 1:58:47 PM
Here is my take on the last two, most recent press releases. Just to make sure, that nobody confuses my following post with an attempt to bash the company, I am still long on MY GNBT investment and still so much convinced that in the long haul GNBT is successful, that I habe just today purchased another 1000 shares, which is currently everything I still able to afford, but I actually hold a boat load of GNBT shares in total. That said here is my constructive criticism of the most recent PR:
To me it is no surprise that these last two PRs have had no, especially no positive effect on the share price. The reason is that they are so unspecific, that they open more questions than they answer. I am asking myself what purpose today's PR has had at all?? Announcing that there will be a PR tomorrow is in the end nothing but a waste of money, as these PRs are not even cheap, as far as I heard.
The release from last week was, in my view, even worse as I had no means to evaluate whether this is a Big, a good, a not so good or even a devastating news for me as a shareholder. Why is that? Because the plain information that the company was able to secure $40M in additional capital alone is not really what I had expected as the details about the "equity investment instrument" play an important role about what implications it has for me as an investor. Should it means (which I doubt) that Joe was able to convince the provider of the capital to accept GNBT shares at a nominal value of $2.5/share or with conditions that would have no dilutional effect for the shareholder value, then I would consider this news BIG. But if that would be the case, why can't the let us know about it then? At the other end of the spectrum, this news could be devastating, if (which I also doubt) Joe has given away the entire company to capital provider, as they gave the $40m only based on a discounted current share price level. Then I am asking myself, why they needed to secure the funding for the next 2 to 3 years, while the pps is so low as it currently is and they are in good hopes that it soon will be much higher than it currently is.
The truth most likely lies somewhere in between these two extremes, but why can't they just tell me whether it has more potential to us shareholders happy, and thus would've really has a positive effect on the pps last week or it was a rather terrible deal, which would have required to give me a good explanation as to why they thought they still needed to this anyways.
To make a long story short, this not the first time that I am mostly frustrated with GNBT press releases and I truly think that they need to do something about their public and investor relations and the general way they communicate with us shareholders through press releases.
I really hope that Joe reads this and accepts it as the constructive criticism, that this long post is intended to be.
To me it is no surprise that these last two PRs have had no, especially no positive effect on the share price. The reason is that they are so unspecific, that they open more questions than they answer. I am asking myself what purpose today's PR has had at all?? Announcing that there will be a PR tomorrow is in the end nothing but a waste of money, as these PRs are not even cheap, as far as I heard.
The release from last week was, in my view, even worse as I had no means to evaluate whether this is a Big, a good, a not so good or even a devastating news for me as a shareholder. Why is that? Because the plain information that the company was able to secure $40M in additional capital alone is not really what I had expected as the details about the "equity investment instrument" play an important role about what implications it has for me as an investor. Should it means (which I doubt) that Joe was able to convince the provider of the capital to accept GNBT shares at a nominal value of $2.5/share or with conditions that would have no dilutional effect for the shareholder value, then I would consider this news BIG. But if that would be the case, why can't the let us know about it then? At the other end of the spectrum, this news could be devastating, if (which I also doubt) Joe has given away the entire company to capital provider, as they gave the $40m only based on a discounted current share price level. Then I am asking myself, why they needed to secure the funding for the next 2 to 3 years, while the pps is so low as it currently is and they are in good hopes that it soon will be much higher than it currently is.
The truth most likely lies somewhere in between these two extremes, but why can't they just tell me whether it has more potential to us shareholders happy, and thus would've really has a positive effect on the pps last week or it was a rather terrible deal, which would have required to give me a good explanation as to why they thought they still needed to this anyways.
To make a long story short, this not the first time that I am mostly frustrated with GNBT press releases and I truly think that they need to do something about their public and investor relations and the general way they communicate with us shareholders through press releases.
I really hope that Joe reads this and accepts it as the constructive criticism, that this long post is intended to be.
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