RE:There Ya GoThis came out of nowhere! The company does not need the $$ right now, not for another year or more. It smells to me like the folks at Red Cloud wanted an opportunity to get in now at a number slightly below market and E3 agreed in exchange for continued coverage and support from Red Cloud. That's the best thing I can come up with to justify this departure from everything E3 has said recently. There don't appear to be any warrants attached so I guess that's one silver lining and suggests Red Cloud has clients who just wanted in and didn't need any extra enticement...aka warrants.
As a friend who's on several venture company boards once told me "when the money's there, take it"