I have held quite a few companies along my investment journey. So far, only one has actually raised on a premium. And shortly after that, the company got taken over.
In addition, almost 100% when a cap raise is coming, the share price will fall and fall or cannot move up at all. But ELS has actually closed on a weekly high last week.
My speculation is that someone big wants a piece of the pie here. And the only way is through a cap raise. And chances are, it could well be done with a premium.
What do others think? I mean, one thing for sure. Either this cap raise has absolutely no leak (I doubt it) or someone big approached the company over the weekend and made an offer ELS cannot refuse
Anyway, another strong sign would be a raise with a premium. Let's hope that is the case.
ELS Price at posting:
$1.93 Sentiment: Buy Disclosure: Held
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