Aug. 12 at 5:21 AM
A quick note on
$TNYA's ATM, because dilution doesn't necessarily have to be as bad as it sounds. An ATM allows Tenaya to issue new shares and sell them directly into the market when they choose. The important part is that the higher the share price, the fewer shares they need to issue to raise the same amount of cash.
For example, to raise
$30M:
At
$0.75 - 40M new shares
At
$2 - 15M new shares
At
$3 - 10M new shares
At
$5 - 6M new shares
So if strong Q4 data creates a major move with heavy volume, TNYA could potentially use the ATM to raise significant capital while keeping dilution relatively modest. That's what diluting into strength can look like, create value first, then raise capital at a much better valuation. So at
$5 for example, to raise
$30M they need 6M new shares, that would increase the share count by about 2.8%.
