Seraphicall
OP
ABCDWXYZ
:
Based on news, it’s an equity financing. Usually it means the company is having 1) liquidity issue, 2) for expansions. Issuance of shares will lead to dilutions, thus the loss of interest from investors which lead to fall of prices. Since this is a public offering for general corporate use, this means to say they are facing potential risks on operational activities and not for financing for investing activities..
ABCDWXYZ : What is the offering actually?
Seraphicall OP ABCDWXYZ : Based on news, it’s an equity financing. Usually it means the company is having 1) liquidity issue, 2) for expansions. Issuance of shares will lead to dilutions, thus the loss of interest from investors which lead to fall of prices. Since this is a public offering for general corporate use, this means to say they are facing potential risks on operational activities and not for financing for investing activities..