Do not accept the offer I agree that us minority shareholders have very little to gain by accepting this financing. Looks like we get nothing in either case. Maybe we can get a better financing offer or another company will buy us out if the project appears to have a chance of being a success.
I have seen this story before. A company comes out with a good idea and some of us early small investors purchase some shares in hope of a good return on investment in the next several years. The project costs more than is raised. Then towards the end when it appears the project will be a success, the money is not adequate, so share price goes way down. Then the related company (who knows that the project is going well) and they come up with the money to complete and get a “ton” of shares and almost all the ownership. They are the ones who make a return on the good idea and us early minority shareholders get nothing. Sound familiar?