I think it would make more sense to do a stock offering and road show afterward to determine the price if the Company was stable with a good track record. But a development high tech risky Company -- doesn't make a lot of sense to me, as it is very difficult to determine the value of the Company.

Perhaps the Company was ignorant, or uninformed of the possible large sell off. Result, we lose. - Poor mgmt.

Or the Company was aware of the risk to the stock price. But did it anyway. Result, we lose. - Mgmt. doesn't care about shareholders.

Or the Company had no choice in the matter, and simply needed to raise money at this time. Result, we lose. - and again question about Management priorities.