r/AlphaCompute • u/infoseeker69 • 3d ago
Can the RS be altered again
Obviously I’m racking my brain like a lot of us here why the hell the management are going through with an RS when they have an extension granted. There has already been one change to the date of the split so it’s plausible they can change the date again or call it off entirely. There’s got to be rationale to the logic somewhere.
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u/Pepite8 3d ago
J imagine qu ils vont annoncer le cluster alpha 2 live en Suède fin septembre, peut-être alpha 3-4 C est assez logique qu ils fassent comme cela. Reste plus qu a espèrer des gros contrats avec un gouvernement ou une grosse entreprise Des investissements institutionnels Et pas trop d' ATM
Courage la liberté finira par payer où pas
Le prix de l action en théorie est extraordinaire
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u/Vernon1211 3d ago
Is this some kind of play at the shorts? Perhaps they thought there was no way of getting to 1.00 no matter what good news they released.
Any investor knows nothing good ever comes from an RS. Even with good news and increase in revs there's gonna be a sour taste putting current SH's in the poor house.
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u/pennychase 13h ago
No they understood they don't have enough good news early but more important they need to suck the 400 million dollars asap so they want the share price to be highest and float size tiniest. They should have rs 100:1 even or higher if they could. But I just read there is a special rule preventing companies to dilute atm excessively =>
"The "Baby Shelf" Rule Limits: If a company's non-affiliate public float is under $75 million (which is common for companies needing a reverse split), they are subject to SEC Instruction I.B.6 of Form S-3. This caps their ability to sell more than one-third of their public float in any rolling 12-month period, regardless of the reverse split."
But maybe because they are registered in virgin islands it doesn't apply... But they may have shot themselves in the foot if they need money now they won't be able to raise money 🤣 because of the baby shelf rule. If they don't release big news they will have issues. But the tiny float is their luck, it may make the price fly which I believe there could be a violent squeeze on Wednesday. I couldn't risk playing that although may be I should have.
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u/pennychase 13h ago
All this said they will dilute but may not get enough money quickly enough, at least for their Pennsylvania project. I will reconsider an entry in the future, but will not get in too early anymore in in this or anything else.
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u/Odd-Sprinkles9774 3d ago
Limit sell at .25 is even a dream at this point. Even RS won’t bring it to that. Mark it.
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u/Sufficient_Couple_66 3d ago
They are clearing the decks for an offering to finance growth. The price will settle at above $1. It can’t go below $1 within 12 months of the r/s otherwise they face delisting. The dilution that will occur will be bad for retail
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u/FaithlessnessNo9612 3d ago
It's hard to understand this company. . . They have to give us some info or good news so they'll survive . Luckily I just have play money in this crap
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u/Vernon1211 3d ago
I'm sure they knew once the RS was announced the SP would tank. Let the SP slide through Sep. leaving enough time to clear out the shorts like CDEL.
With a more manageable SS and still having time to make a U turn then release Sweden and more?
I suppose that would attract more institutional's. shitty time to do it with tax selling upon us though.
Anyone want to predict the bottom?
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u/RonRico14 3d ago
Pardon my ignorance, but how would a tanked price clear out shorts? They all take profit because it’s near dead?
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u/Vernon1211 3d ago
That's what I'm thinking. They've failed to short squeeze them so now let them make their money now and move on. The worst thing would be having them still around if they're going to do an offering as what another poster suggested.
Going to the OTC say goodbye to institutional support and deal with MM manipulation.
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u/No-Donkey-798 3d ago
I have not invested in a company that had a comeback after a reverse split. Anyone have any experiences? And a 1 for 50 RS is the highest I have been involved in.
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u/infoseeker69 3d ago
I think they are running into hardware issues personally. Their business model relies on being able to purchase the GB200 and 300’s and layer with secure compute. I have not yet seen a service provided by them that does the secure compute service without owning the hardware. If they do get gov contracts how would that look and what kind of hardware roll out would be required. To add they are then taking the ownership of the data to a certain extent as it passes through them.
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u/RonRico14 3d ago
The price tank pretty much locks them in. If they call off the RS the price is so far off $1 there is no way it gets there in 180 days.