$RGSE Real Goods Solar has 2 million shares outstanding, and today it traded over 44 million shares. So every share of the company was traded an average of 22 times. The stock was up over 100% to $5.59.
Buyer beware: The company has recently issued various warrants, convertible preferred stock, and senor secured convertible notes. The preferreds started to be converted into common shares on Monday (9/26). They can convert the shares for 87.5% of the previous 5 days prices and then immediately sell the shares, so be set to see this stock decline about 10% a week indefinitely. They have already gone from having 1.2 million shares outstanding to having 2.0 million shares outstanding in just 2 days.
The senor secured convertible notes start to be converted into common shares on Oct 1. These notes are convertible into shares at 85% of yesterday's prices. So an instant 15% profit for the noteholders.
They are expecting such a massive flood of new shares, that they have provided a web page where they promise to update (daily) the number of shares outstanding: http://ift.tt/2djvD2x
This appears to be a classic case of death spiral financing. Stay away.
Submitted September 28, 2016 at 02:35AM by qwertymcgerdy http://ift.tt/2djzFYN
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