in my mind it is just one of those rare instances where a capital raising provides the trigger for massive share price appreciation, because it reinforces the company's position in terms of its ability to sign major (global) deals with counterparts who are looking for financially solid partners.
we won't know if the string of announcements could all have been made without the CR .....e.g. could we have ordered 3000 units upfront on the previous rate of cashflow, or would it have taken longer to get bank funding facilities etc etc...?
Management will have realised they had a once in a lifetime moment to rapidly accelerate the company based on the overwhelming feedback about the Ohm product. It's possible they could have waited a few weeks as I suspect the groundwork for the announcements we've had was already underway, but we will never know if the SP would have risen to where it is now without the CR. There has been a big shift in sentiment towards tech companies and it would have been a mistake not to catch it. I believe the "monster deal opportunity" of which we eagerly await more information, will have required Buddy to have had a minimum amount of capital or cash resources to enable them to sign the deal. That is not uncommon in big deals.
At the end of the day, the SP appreciation is much more than the dilution - perhaps by a factor of 10:1 - and it has created even more opportunities for BUD. I can see where you are coming from that 100% return in not even 2 weeks seems like they may have got it wrong, the bankers are no doubt grinning like cheshire cats but the volumes since the CR would indicate that not that much selling down has occurred. The buyers keep on coming, like Mr. 1 million in one line at 40 cents just before the close this afternoon.
I guess we will get more insight from Dave and the team tomorrow. Look forwards to that.
BUD Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
