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Originally Posted by thebmw
I understand not paying more than the market for direct offering. But the offering price is often made days before the actual closing of the offering. Hence the people who buy the shares at the direct offering might pay more than the current market price. That doesn't make them idiots.
You're obviously not large investor investing millions. I've had the opportunity to do direct offerings and private placements. I know how the game works and I would hardly say that everyone is an idiot. That's how companies raise money. This is pretty standard practice. You are literally calling every single person who's ever invested in a company before they went public and after for capital raises an idiot. That doesn't even make any sense.
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Companies should not be issuing more shares after IPO anyway. Just dilutes the shares that other people paid good money for. Companies I see listed here have had negative revenue for years or decades and have done reverse splits and DOs multiple times. IMHO, that is NOT looking out for the shareholders. Oops, we didn't make any money this year, let's put a $40M DO out there and spend more money. Wonder why they can't get any capital from banks or venture funds. Oh, they suck, that's why.