RE:SimpleI never understand why those not invested in a company are motivated to post on these boards. Are they truly that ultruistic? I doubt it. I can see the potential value if you were short (I don't short and don't believe we even need the liquidity - it's just ripe for abuses), but I don't believeyou can't even short these penny stocks, can you? Just hoping to buy lower? How much influence do these boards have anyway? I guess this board has a reasonable following. Lot's of questions/thoughts. :-)
I don't like seeing private placements like this either. Call me ignorant or naive. I gather it is too difficult or risky for a company to extend such an offer to existing shareholders? It's just like the phone or cable plans - only offered to new customers. We already have you on the hook so F u. ;-) They couldn't raise 2M from the shareholders at large? On this board? Is there a legal, process or technology barrier? I've been asking this for 15 years and I know it would have been asked before.
Anyway, despite the negative sentiment, the positive spin I will put on it is that it was not done at an immediate discount - which they often are. Of course the buyers have warrants that could change that in the future. I would have seen it as an entirely positive event if simply done at or above market without the warrants. As it is, I feel like it's just the ol' boys club looking after one another.
One last thought. I negotiated/befriended my way into a PP once. Thought myself lucky. The company is defunct and my money gone :-)
Good luck to those that have chosen to invest in the company as I have.
Those that are not invested, I'm happy to read any thoughtful analysis you might care to provide, but honestly not sure why you would be motivated to do so.