Imagine how much confidence traders would have if the company went out there and told the market there is no trading halt coming in the near future and that there would not be a further issuance of shares at a deep discount to the market price.
A placement will kill the momentum in this stock. Sure the company will have the money but it will burn the traders, some of which already have ridden the wave up and will exit anticipating a CR.
There is a fine line between raising money and then killing the secondary market for the shares. Time and time again I see cash flow negative companies opt for the easy cash grab during times of high liquidity and traders/speculators scatter - killing liquidity. Hopefully for KNB shareholders management are wise enough to find a way to raise some funds incrementally without impacting the secondary market.
KNB Price at posting:
6.6¢ Sentiment: None Disclosure: Not Held
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