UniPixel (UNXL) -10.7% to $33.96 after pricing its public stock offering (previous) at $32, and...


UniPixel (UNXL) -10.7% to $33.96 after pricing its public stock offering (previous) at $32, and announcing 1.2M shares will be sold. The offering will yield net proceeds of $35.8M, and increase the company's diluted share count by nearly 15% from where it stood at the end of 2012. (PR)

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Comments (6)
  • scavok
    , contributor
    Comments (129) | Send Message
     
    This is extremely bullish, as this is really the minimum amount of money they needed to meet their current production goals. If it had been significantly more it would have fed in to the bear case, or simply been a bad move as the share price is expected to be much higher as production ramps up throughout the year. Expect more dilution when the share price is 2-3x this as the bear case of fraud unravels.
    18 Apr 2013, 09:27 AM Reply Like
  • JBird61
    , contributor
    Comments (294) | Send Message
     
    I agree. This represents about 10% dilution (I've read just over 13M shares outstanding, including existing employee options -which will surely be exercised in time) so this offering brings the total to under 15M shares. With the huge potential UNXL holds, this is a minor difference to the long-term value of the shares.
    18 Apr 2013, 10:03 AM Reply Like
  • Mukticat
    , contributor
    Comments (2060) | Send Message
     
    Yes it's always so bullish when you have to discount an offering 16% (!) to sell a mere 1.2M shares, not. Frankly if there were something to this company there would be banks beating down their door offering them loans where they wouldn't have to dilute the stock. After all if this stock is an easy double from here six months out dilution at 32 is the most expensive form of new money.
    18 Apr 2013, 10:38 AM Reply Like
  • ouijaman1
    , contributor
    Comments (247) | Send Message
     
    No offering gets sold at the all time closing high. This was not a discount, it was the average price for the past 10 trading days. Exactly what I was expecting. The company couldn't afford to wait until the price was $50 - $60, they needed the money today. They also don't speculate as to what the future price will be.
    18 Apr 2013, 12:08 PM Reply Like
  • Kitesurfer1962
    , contributor
    Comments (88) | Send Message
     
    Investment comes before revenues ! At the end of the year ... nobody will care about these extra shares.
    18 Apr 2013, 01:58 PM Reply Like
  • JBird61
    , contributor
    Comments (294) | Send Message
     
    I agree, Kite. This 10% dillution is nothing in the big picture of Uni-Pixel. Either they produce and the price triples, or they fail and the price tanks. There are grey area scenarios, but most influences are huge factors - not 10%. If an investor cannot stomach swings much bigger than this, they should find a nice dividend paying stock. I recommend JNJ.
    :)
    18 Apr 2013, 02:29 PM Reply Like
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