direct offering question

Discussion in 'Trading' started by cashclay, Oct 20, 2023.

  1. cashclay

    cashclay

    Hi i am kinda of having alittle difficulty understanding what this means. the company purchased its own shares at a price of 1.25? if so is news like this good or generally bad for the stock price ?
     
  2. newwurldmn

    newwurldmn

    it looks like they are buying their own shares at 1.25 and financing by selling warrants to someone.

    It smells shady to me.
     
    beginner66 likes this.
  3. cashclay

    cashclay

    what does that mean ? do you think theyre pumping the stock ?
     
  4. qwerty11

    qwerty11

    It is bad news. Especially the warrants.
     
  5. newwurldmn

    newwurldmn

    I think they are moving ownership to a specific party.
     
  6. newwurldmn

    newwurldmn

    I think I misread it.

    they are issuing ADS’s and warrants. I think they are giving the warrants away for free (maybe to the people who are buying the ADS’s)
     
  7. The company raised $5M by selling new shares to select investors. Good for those investors, good for the company, often bad for everyone else.
     
    cashclay likes this.
  8. cashclay

    cashclay

    does that mean it bad for people who long the stock
     
  9. Placement is 99.8% bad news but somebody is buying this one
     
    cashclay likes this.
  10. cashclay

    cashclay

    what does placement mean ? i think they might be buying and then the gonna dump it
     
    #10     Oct 21, 2023