This is normally to create strong demand for shares...
typical move by any management..investors want assurance that sales are strong otherwise why invest...
few points:
Keep basic model in mind..
1. Not very dilutive..ok..the Key is where will it be used? To have support , extra a but of cash in this market not a bad decision...hire extra sales..like extra 10sales?
2. If sales for first 2 months comes at over 4mln ..this would imply their acquire over 3000 customers per month with over 80% re-fill rate - that is a great starting point...this will almost Guarantee us Q2 of 25mln ..
3. Will they give us insight into Q2? If they want to use this extra cash to hire 10more sales people, because they see demand is big - why not????
if we see we can get 4000 new customers per month instead of 3000...who will complain here?
back to basic model...
(20min delay)