Q What is the process to raise the money? Rockymica??
A: I believe the following takes place. Someone correct me if im wrong
1. The Company goes on a number of roadshows highlighting our products, infrastructure, sales, IP and potential disruptive technology. During this time the company sets expectations for up and to the right, creating shareholder value etc etc.
2. Once the roadshows are complete POET sits with R&R,Cormark and IBK to see how much interest investors have shown in the placement. This interest is usually respresented by a "placeholder". In other words POET should have some idea how many people represented by $$$ want in on the deal.
3. POET then sets the price based on the above.
If POET can set the expectation that we are about to launch and the $$$ required are for IP, Aquisitions and hopefully they have stirred up enough interest we may do ok.
I do believe the "proposed" word is still valid and if you look around the internet you will see some headlines which read "cancels" placement.
My hope is that the company had already done the math of how many shares they want to issue and at what price. It may be Suresh's first time as CEO but you can bet he has a personal portfolio and an intelligent guy like that knows what dilution is to investors. I cant see how he could approve a placement price lower than the prevous offerings.
I also believe below speaks of a position of strength.
"The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, increasing working capital, further product and sales development, as well as potential business or intellectual property acquisitions in support of strategic growth"
