RE: 2,800,000 MORE shares? Appears to me there is another dilution of 2,800,000 shares which only has value of $140,000 to the participants at present value. It is high risk investment for them and thus the need to pay them the high return in a combination of interest, proceeds of future earnings and stock issues.
It does beg the question of why resort to this type of capital raising. Has D&H stopped the infusion of money? Banks obviously won't lend the money based on valuation of sales by the looks of it. It isn't a big sum.
For a company headed towards profitability this year, the sales obviously haven't supported whatever needs they have to keep their doors open. $800,000 needed that desperately? Is it to just keep the doors open until sales improve?
On the negative side, it appears that it is a desperate way of raising capital when they can't get it anywhere else.
On the positive side, the investors obviously aren't just throwing their money away (hopefully) and are optimistic that there is a brighter future. As they are basically insiders making the investment, they certainly have the advantage of knowledge but on the flip side, they also have the most to lose if the company goes under. If the company just issued the value of the $800,000 to raise the capital, there would be another dilution of at least 16,000,000 shares and possibly no takers,
Japan appears very optimistic as well as the U.S. and there are signs of resurrection in Ontario. However, it is also very dependant on the rise or fall of Tenk Solar's future fortunes. A lot of eggs in that basket.
Interest has obviously been sparked in the last week and perhaps there is merit in the company's sale of modules and electronics to other inverter companies as previously announced but not backed up by M.C. There has been very little announced as follow up on that one. If the technology is that great, other companies would be very interested in it. Hopefully that is the case. Licencing of technology is a low overhead great income generating venture.
All the above IMHO.
GLTA