CELM stock has been promoted on a regular basis since March this year. The company itself is paying for the stock promotions. The compensation consists of $30,000 in cash and 2,000 restricted shares of CELM common stock and the investor awareness services contract is for twelve months. On Friday, along with the disclosure that the next stock promotion has been made, the company issued also a press release.
It said that its CFO will attend a conference and will meet institutional investors in Maui, Hawaii this Thursday. The total positive effect on CELM share price was almost unperceived, a 0.44% increase to a close of $4.61 was recorded and the volume was only slightly different from the average.
After even the impressive and substantially improved second quarter results caused only a short-term spike in CELM stock price, it seems that currently investors are not full of optimism.
At the beginning of the month, CELM stockholders approved the company’s 2010 Omnibus Incentive Plan, under which certain equity awards may be granted. A total number of three million shares of common stock have been initially reserved for issuance under these awards and a registration statement for the shares was also filed around two weeks ago.[BANNER]
During the first half of the year, CELM has already diluted its shareholders by more than 47%. In January, a public offering of five million new common shares was completed and the additionally granted warrants to purchase another 500,000 shares are still outstanding. The settlement of $1.3 million debt owed to a former director of the company came also in exchange for the issuance of another 284,843 shares of common stock. Another over 626,000 shares were issued upon the conversion of some previously outstanding warrants.
