Bottom Line Profit and the Impact of eHealth market, page-5

I think "capitalization review" has different meanings, depending on the context.
For many small, negative profit companies, it would likely be a capital rising.
For large, profitable firms, it could be either issuing options, loans or capital rising. etc.

After looking at the history of CMP, even during its acquisition of german DWL, it did not directly raise capital from the public but instead, CMP only raise capital from specifically the companies in partnership with CMP to create alliance and synergy.
During the bad time with negative profit, CMP has rarely raised capital from the public. I don't think it would now, given it is in a better position to generate profit and growth.

In terms of merging, alliance and acquisition,
firstly, it would be good, if some other large firms own part of the company to provide their expertise.

secondly, given the acquisition capacity of CMP (given the market cap is only about $20million) would be small, bank loans should be able to cover it, instead of capital raising.

thirdly, merging with other firms should not be too bad, since CMP is already a small firm, chances are that its merging partner would be a much larger company with more capacity.


Market is not a place to get emotional!