Raser Technologies (RZ) surged nearly 20% today after the company decided to cancel its plans to raise cash through equity offerings.  The reason?  The company felt that the dilution was hurting the stock price too much! No sh@$#@t.  You have to wonder about the brains behind this operation if they didn’t realize more equity offerings would weigh on the stock.  I’m sure it’s been done, but I don’t believe I have ever seen a company cancel an equity offering like this based on a stock price.  I’d imagine the company is trying to avoid class action lawsuits not to mention potential delisting from the NYSE.  Technically, the stock actually looked quite good before they announced the offering and had begun to stabilize around a buck. 

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Raser CEO, Nick Goodman commented, “Since the announcement of the Controlled Equity Offerings we have seen a great deal of volatility and a downward trend in the price of our common stock. We continue to believe that we can enhance stockholder value by executing our business plan, and we intend to use our best efforts to do so. In total, we have raised approximately $1.8 million in proceeds from the Offering, which equals approximately 6.1% of the total volume of shares traded since the Offering was announced on April 8th. While we are disappointed the ATM may have contributed to increased volatility of our stock price, we are comfortable that we have sufficient capitalization to meet our current needs and look forward to the results from our ongoing development and drilling activities at Lightning Dock.”

After the bell, the company reported its quarterly results and reached the $1 million in quarterly revenue milestone for the first time.  Non GAAP EPS came in at -.10.

“We had some significant accomplishments during the first quarter,” said Nick Goodman, Raser CEO. “Once the final performance test of Thermo No. 1 is complete, we expect the project to be cash flow positive. That is a good position to be in as we move on to our next geothermal project in New Mexico.”

Until Raser can get back above the buck and hold there for several months, I don’t see any reason to be in the stock.  New management isn’t instilling much confidence and this is still a company a ways off from being profitable.  We’ll continue to cover Raser here at Green Stock Central and see how the Thermo 1 & Lightning Dock plants progress in the coming months.