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clock Created with Sketch. 06/07/16
13:31
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Originally posted by DreadPirateRoberts
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I asked a lot of questions about this CR. I believe I said something like "if these guys want to buy, why not go tell them to piss off and go buy on market?" Reason I was told was that the two acquisitions, although done as stock deals, will still have rather significant costs involved that will drain some cash. And cash is really important for a company growing so quickly. So the opportunity came to do a small CR to cover the costs, and so the acquisitions will not shorten the runway the company has. It will then truly be an all stock deal, and not cost the company any cash. Why do it now? Well you never know what may happen with the market (Brexit for example). It's better to take the cash now and get it in the bank than to wait until you really need it and find out the investors are not there. Why offer it at 10 cents and not 11 or 12? Well it needed to be at a discount otherwise the investors would have a better deal just buying it on market, and the company would not get the extra cash. He said he was pleased with the raise, the announcements caught the attention of new major investors who are now on board. The entire amount was raised very quickly.
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Appreciate you sharing this discussion, and the response's were as expected, and I look forward to an update about integrations as they are completed in due course.
