Increased financing @.40I have not been able to quite figure this one out to a point that makes it seem right.
The stock had recently hit .79 and was trading in the .60's when we get news that they are increasing the financiang down at the 40 cent level.
Can someone please explain to me why this is good for us and why they would not have come to terms for the new financing ($5 million) at the trading range of the .60's?
If they would have made just the original agreement for 14.5 mm$ @ .40 ,(which seemed like really cheap shares to me),but since it was needed really badly,I could understand it,even though i hated to see the amount of dilution it was going to cost us.
Now however,this is just giving shares away it seems to me.
Surely,there was a good chance that the terms could have been changed to match the new trading range,or SDI should have been able to persue the additional financing (for the $5 million) elsewhere at a much better price of maybe .60-.65 cents/share.
Now...we have given a bunch of paper away that is going to cost us a whole lot of money down the road imo.
The effect of this dilution will hurt us a lot,and all that it did was let a bunch of others in cheap..
I cannot see the need for it to be done in this manner at all....My vote will be no...(if i actually get the chance to vote!).