Mtec currently has 7.4 Million shares. In the Preliminary Proxy Statement/Prospectus filed by the company with the sec on 5/14/19, https://www.sec.gov/Archives/edgar/data/1719893/000161577419007785/s118340_prer14a.htm , it states that the new entity, AKERNA, will have 75,000,000 shares.
Won’t this dilution cause the stock and warrants to drop significantly? How can Mtec maintain their $10.00 plus share price when the share count jumps from 7.4 million to 75,000,000.?
Wouldn’t the stock drop from $10.00 to $1.00? And the warrants become worthless? If that is the case, why isn’t everyone bailing?
I hold the warrants at a higher price and am considering taking a 50% loss. I would appreciate anyone’s opinion that has a better understanding of SPAC companies and warrants than I do.
Am I perhaps misreading the Proxy statement.?
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