"...not much being raised"You're joking, right?
They are raising an amount equivalent to 10% of the market value of the company.
That is a meaningful amount of new equity that needs to be serviced to perpetuity.
Accordingly, I am very keen to learn to what end that not-insignificant quantum of new funds will be applied.
".. guess it's prudent not to dilute too much and they can go back to the well in 6 months at $2+""If, after this capital raising, there is even the most remote hint of them going back to the ...er... "well" in 6 months' time, I am quite certain most self-respecting shareholders will sell their shares as fast as is practically possible.
And, incidentally, if you believe - as I do - that the value of the company is, maybe three times higher than the current price, by issuing new shares to some lucky folk at a price that is one-third of the fundamental value of the business is, in my mind, definitively dilutive.
