Yes it's been there other years, thanks for pointing that out.
Based on 30 mio being 15% if current MC. If SP doubled up to 85c (still well below last SPP) then that would double the MC and 15% of that is 60 mio. 25% of current 200 mio MC is only 50 mio.
Higher MC means more $$ raised for selling the same amount of new shares. Issuing extra shares at all time lows is not a sound idea. If the market values SPT at 200 mio and u issue 25% new shares but the underlying business doesn't change, then the SP will adjust (fall) pretty quickly. Soon the MC will be back at 200 mio but everyone's shares are now simply worth less.
Shareholders aren't happy with the decline in SP. Board obviously aren't happy either given they replaced the CEO. We haven't heard from John on what his plans are or what his goals are specifically. They have 66 mio in cash + revenue they bring in + ability to issue 15% more shares already (30 mio at current MC). To steal noramando's line; "show me the results and I shall grant your wishes." I'd like to see them use existing funds to begin to prove their new strategy can increase the MC of the company over the next 12 months instead of granting extra shares without understanding what the extra funds would be used for.
SPT Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
