The first projections I was hearing from people who were trying to get in was that Cormark expect the PO to close at between .45 and .50. And I think it would have been fully subscribed at that price with no problem. The fact that it got taken down so dramatically by selling was a gift to the sharks. That projection got lowered as the share price continued in decline. The US investors offered what they believed was the minimum price based on the prevailing share price (the maximum discount). I don't think it was a case of what they value POET at. It was simply what they could get away with as the lowest possible price.
That being said there are people who did convert shares to get a piece. I know this. Selling common shares at below .36 in order to get warrants is a no brainer.
The question that remains is why POET management needed to accept such lousy terms. They are very aware of how bad it would be for their loyal shareholders. And that is what many of us of here have been here. Very loyal shareholders.
I think we will be getting an explanation from Suresh as he is allowed to (this week). Then we can make a more rational assessment of the reasons.
Is it the disaster that many here are making it out to be? I doubt it. I do not believe the price was set at anything that reflects the value of this company just what the sharks could get away with.
We should know more this week. Let’s hope that Suresh can provide a reasonable explanation that points to this as being a short term hit to our investment and that whatever the quick cash was for will have made it worth the dilution.
And please. Let’s try sticking to the facts. People are talking about worst case scenario’s and framing them as fact. I think we have been beaten up enough without the added flames.
