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18/08/15
13:09
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Originally posted by mightypirate
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No, because that would dilute existing sophisticated shareholders, and it would also dilute the potential gain for future sophisticated shareholders. You are thinking in terms of a public offering that is made in desperation. Newzulu, however, does not need this kind of discounting. They (and the investors) will want to keep potential gains for investors as high as possible. The less dilution, the less shares are issued, the higher the potential profit per share. It simply does not make sense to dilute too much.
No. Of course, investors would not have been told anything before the trading halt. Newzulu is in a trading halt now though. That means that information such as a new deal can be shared with investors, as long as it is released before the market re-opens for Newzulu. I was thinking of something like an investor who said, "I'm going to invest, if you can give me more information". Then it would have to be announced before the market re-opens.
Anyway, I just wrote that as an example, to underline a potential scenario. I do not think that it is likely. More likely, they just filled their placement and need to negotiate final terms.
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Well thre you go mightyp, CR as predicted two weeks ago.
I thought this may have been the day to re- enter. But have decided not to due to issue of options as part of CR. That's one thing i didn't expect. May leave this one alone for a little while longer.