Q: The Fresh Factory announced a US$3M straight equity financing today which implies a C$1.28 per share value. The stock last closed at C$0.91 which implies a 41% premium. Is this a very good sign?
5i Research Answer:
FRSH can use the capital, and any financial support is generally good, but there is share dilution. But the shares sold are multi-voting shares (via conversion) and are different than those traded. We would not assume the price differential is significant because of the different share structures.