RE: RE: Where the institutional interest????I've asked myself ... would the institutions which are already in ... react to the ELOC being drawn down significantly ... meaning ... the means to a higher share price ... would it be a means to provoke institutional negative pressure as the price starts to move up ... and if so ... what price would provoke such a thing?
Hi, HM.
While I'm pleased that there is probably a 5 day hold susequent to the notice of intent, I'm only happy because it casts DOR management is a better light and makes the terms of the ELOC seem less desperate. Any shareholder should feel negatively to the "ELOC being drawn down significantly" - institutions included. If things work out in Kodiak's favour, current shareholders (approx 200 million shares) stand to have their holding in the company drop from around 90% to under 25%. That's bad for every shareholder... except Kodiak. ** And a reverse split will not solve this problem.
I have to respectfully disagree that a significant drawdown of the ELOC is "the means to a higher share price". It is certainly the means to a higher market cap, but that will be absorbed by the hundreds - yes, hundreds - of millions of shares that will be issued.
After fighting tooth and nail to avoid losing majority interest, it seems strange that the company would put itself in a position to face this kind of catastophic dilution. That's why I think...hope... there must be other financing in the works.