'Less is More' - When Lime Energy Raises Money

Sep.22.09 | About: lime energy (LIME)

At Lime Energy, their slogan is "Less is More." I don't know if that refers to their profits, or their ability to tap the capital markets. Consider the chart below:

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Lime Energy (NASDAQ:LIME), a consulting firm focused on improving clients energy efficiency, announced a 5 million share offering at $5.50 - that would be a 21% discount from yesterday's close and 31% discount from the $8.00 the shares traded at just a few days ago.
The terms of the offering show a truly gruesome 7.5% commission/expense related to the offering.
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In the firm's defense, their operating results are bad enough that they may not have had a cheaper option for raising money. That said, the offering was far too attractive for the I-bankers, and far less friendly to regular old open-market investors.
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Disclosure: No position