Thanks for your reply. I have to disagree with the idea that institutional investors wouldn’t be aware of Oleg’s history managing shareholder capital. A quick look through past announcements would reveal how he’s handled things. I’m sure they’d invest half a day’s research to save hundreds of thousands.
It’s true that opinions will vary depending on which investor you ask. Those who got in at 80c have likely either cashed out by now or reduced their holdings at a higher rate. But since this raise is exclusively for institutional investors, it’s clear there are institutions ready to buy in at $1.15.
To recoup their 15% discount, the price would need to rise back to at least $1.40. Yet some here are suggesting it could drop another 30% down to 80c?
I agree that I’d prefer Oleg to hold shares, but I understand he has performance rights. For example, if he hits $200 million in revenue, he’s set to receive a higher number of shares, that’s a strong incentive to continue performing.
Institutional investors are generally tougher to mislead than retail investors. If Oleg doesn’t deliver, they won’t hesitate to replace him as CEO.
Time will tell who’s right. There have been cases where people like you raised red flags in other stocks, and they were right. You could be right here too.
But on the flip side, there have been those who predicted stocks would plunge, only to see them rise higher.
In my opinion, H2 will be the defining period. We know the pipeline, the conversion rates, and the inventory build-up from the earlier capital raise this year. If they don’t execute in H2, then it might be a tough road ahead.
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