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MicroVision stock offering -1

16:24 21-Mar-16


MicroVision has announced that it intends to sell stock in an underwritten public offering.  I would not be surprised if word had leaked out, contributing to recent pricing.  The terms at which the stock is ultimately sold will eventually show us whether or not recent declines are already pricing in the event.  This is part of the roller coaster that comes with investing in early-stage technology companies, and why I've had a cautious tone.  Energy Recovery has been an example of the upside potential when one can correctly assess and manage these risks. 

This doesn't diminish my outlook on the company's technology at all, but of course, the terms of the sale will matter.  The preliminary prospectus lacks details, but makes it look as if maximum dilution would be the 4.8M shares that aren't already floating, or approximately 11%.  That wouldn't be all that bad in light of the current pricing, but I'll wait to hear exactly what the sale terms turn out to be before making any further pronouncements.