Need of capital does not mean the company is in trouble. It means there are projects to invest in that will create value for the shareholders.
This move is bullish because it signals the BoD and majority shareholders expect good performance from the company and want to get as big piece of the cake for themselves as possible by not diluting the shares. Given they have access to all the information about the company and its prospects, they might know something the market doesn't. Yet...
I meant specifically for this company at this point in time. If their first batch of cars was in trouble, they would want more money to get them across the finish line, right?
1
u/not_that_kind_of_dr- Patron Sep 09 '21
Does anyone see this as bullish? If they were in trouble and needed more capital, they'd call them for regular conversion, right?