StockGuy is Right ...Weak Hands FoldBravo for this move SSS !!!
I completely agree with this tactic that they employed at SCT.
Sure, the thought of dilution is not what the market likes to hear.
Guess what? It is not what the Board wants either. A dropping unit value takes everyone with it so they don't want their millions of shares to move down also.
What this gives them is the ability to walk into negotiations and enter into arrangements NOT like some poor 'cap in hand' lightweight but rather they can sit at the table knowing that the other party sees them as credible. If they don't feel like they are being treated respectfully and fairly, they can now walk away and get 15 Million dollars all by themselves IF they need to. But they don't really want to.
You see, it gives them the ability to stand straighter, talk tougher and negotiate harder for the best deal for all of us shareholders. Including themselves. It is tough to negotiate the price of water if you fear you will die of thirst.
Like having a bunch of stacks of poker chips in front of you at the poker table is beneficial.... everyone knows that you mean business and they can't try to clobber you because you look weak and vulnerable.
The people who choose to jump out today are doing so for emotional reasons... nothing more.
Look below the surface people. Due Diligence doesn't stop at the Press Release.
HnG