RE: I bet Kym Anthony did some good consultingComedy,
Keep in mind that when the options are excercied capital goes into treasury at the exercise price. So if / when all 23.5 million options are exercised at 35 cents, then $8.4 dollars is paid to the company in addition to the $8.3 net they get from the note after commission. Fully diluted its effectively 27 cents/share.. worse case scenario.
If, in fact, the forecast deals are imminent in Q1 /06, then the company could pay back all of the note with only half conversion and relatively limited dilution.
While there's no doubt this is expensive short term, its necessary to facilitate and make up for the shortfall left by the Hemosol debacle. At the very least, this cash should deliver us to a number of long awaited and valuable milestones including launching PRDT filters and JV'ing 1402 on Phase II results.