I’ve seen many unprofitable start up companies go bankrupt recently and it got me wondering, why don’t they simply issue more shares a year before when they know as most executives at a company know their cash burn rate and cash reserves so would easily know a year or so in advance that they would need to raise money .
Specifically Virgin Orbit lately, it was obvious a year ago they would need to raise money, and I was always survived they simply just didn’t do a share dilution .
Is it because if a share price or market cap is too low you can’t really do a share dilution to raise money ? If so, what are the common minimum requirements?
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