Lspd Treasury Offering of Subordinate Voting Shares

I also wanted to add that the issue was more than double over-subscribed. This means that there was very strong demand for this share offering. That bodes well for a quicker than normal recovery as the markets are likely to scoop up this shares fairly quickly.

The share offering is going to have a negative effect on the stock over the short term for sure. Obviously when you add more shares outstanding, it's going to dilute the share price. Although it wasn't too bad, with the issuing price being around $37.30 a share, only 5%~ lower than the stocks price yesterday.

We can expect this from a young growth stock, and the company has stated the funds will go towards expanding its customer base, rolling out LightSpeed Payments and supporting the growth of existing customers. When share offerings are made to fuel growth, we don't like it, but we don't hate it. It's a much better situation than a share offering being made to support the payment of a dividend or debt.

With a young tech stock, there is going to be plenty of bumps in the road. An investor long LSPD will need to have a strong level of patience.

Mathieu and I (Dan) both hold long positions in LSPD.