The company will be deploying the extra cash almost immediately...

The company will be deploying the extra cash almost immediately into working capital as new capacity is coming online. returns on incremental capital are very high. A 2% increase in shares outstanding will increase tangible book and near term earnings power by about 50%, so we should see higher EPS over the next six months than we would have with no raise.

We are at a critical juncture in the industry adoption of zinc oxide and it's important for ANO to take as much share as they can get now rather than make their customers wait and miss opportunities to grow. Switching costs are high so short term sales are long term important.