Shorting stocks: Broken stocks - Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: chester lee who wrote (1973)	11/8/1998 5:04:00 AM
From: Dale Baker	Read Replies (2) of 2506

Did some digging into WEBB and found two convertible deals already which diluted the shareholders about 10% through June 1998. Now much bigger dilution is on the way, up to 100% of the current market cap: "The Company believes that its cash and cash equivalents and working capital at June 30, 1998, plus the net proceeds of the offerings of preferred stock that were completed during the first six months of 1998 will be adequate to sustain operations through October 1998. The Company has entered into a letter of intent with a placement agent for an offering of its securities for gross proceeds of $15 to $18 million, which is expected to occur during the third and fourth quarters of 1998. The Company estimates that it needs to raise at least $15 million through equity, debt or other external financing, to implement its business development plan." There hasn't been an announcement that they closed a deal like this - if they don't their cash burn will take them under soon. Results for quarter ending 9/98 have not been released yet.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next