Because if they have no fundamental value or a good product it leads to a drop in the shareprice, as it is a transparent ploy to stay afloat for another cap raise.
Also, a drop in market cap does not equate to access to capital from institutional clients.
I've been involved in a company that was taken from a $50m market cap to $300m by soph placements alone. The concept was attractive and the fund handling it oversaw changes in the company in order to diversify business risk. The thing that attracted them? The capital structure. The product wasn't exactly making money, but with strong support from instos a good capital structure is worth its weight in gold.
A company with 100m shares at 50c is a very attractive structure, so long as the company is sound.
My guess is after dual listing and a few product releases we will see share price up around a few dollars and they will be announcing a $20 to 50m placement to soph clients at a discount to diversify their product range.
But I've only been in the market 20 years which I still consider an apprenticeship and I dont claim to be right, im just taking an educated guess.
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