Just watching your "How to make millions" and started looking for some % movers - low and behold EKSO pops up at 18%+ - Charts are poor with a recent big drop with a small recovery Press release on 19th July states they are raising capital through sale of shares which created the drop. Some clear resistance previously at 2.50ish so will put in watch list to see if it scales towards this.Thoughts for its future?
https://finance.yahoo.com/news/ekso-bionics-announces-proposed-34-130500763.html
Posted Jul 22, 17 2:02 PMbyRyan_of_Arabia
Tickers
EKSO
The math of the offering is a bit scary. Worse case new float of ~56.6M shares. That's an 2.44x float increase. Current market cap is around 40.91M according to finviz. With the new float, to maintain that market cap, the new share price = $0.71. If share price would be to hold at $1 after offering, market cap = float = 56.6M market cap. As share price goes up, higher market cap, but you'd need some fundamentals or higher expectations to maintain it.
That's not to say there won't be trading action up to that point, but you're looking at some major dilution on the horizon, so you know the downside risks when coming up with a plan.
Join now or log in to leave a comment