Posted by: player1234 Date: Thursday, August 21, 2008 6:08:47 PM
In reply to: None Post # of 170042
Wave may not be able to do another substantial PP with the current share price.
One of my interns reminded me of SEC release 33-8788.
(See sec.gov )
In a nutshell, here’s what it says:
If a company has a market cap under $75 million at the time of a placement from a shelf registration, they can only do private placements from shelf registrations up to a maximum of 1/3 of their market cap over a trailing 12 month period. The market cap is determined as the highest value within 30 days of the placement taking place.
So:
Outstanding shares being 57,159,434 as of 8/1/08 (from 10Q)
1,368,333 sold in the 8/11/08 offering
Total outstanding shares: 58,527,767
8/21/08 closing bid price: $0.46
Today's Market Cap: $26.9 Million
PPs in the last 12 months (Total $7.621M)
8/11/08 $821,000
7/01/08 $1,600,000
5/23/08 $1,700,000
3/03/08 $3,500,000
1/3 of today’s market cap is $8.96 million.
$8.96 million - $7.621 million = $1.34 million
So, using today’s market cap, it appears they can only go for a maximum of $1.34 million via PP from the shelf until the share price increases or until 3/03/09. |
