RE:What Happens....Biloshi, nobody was wondering. What is the point of this rant and what is the relation to NCI? PP's are necessary for future growth if a management team knows what they're doing. Show me a successful junior tech company that was purely self financed. Do they exist?
Many PP's are done at a discount to market in order for the private equity firm to be compensated and rewarded for the risk of being a creditor. FSW is not even profitable, heavily leveraged and their margins are very low. They are probably treading water and desperately need the cash to stay solvent. The result is more dilution and erosion of shareholder value which makes it a bad investment. NTG is that rare company that has and can manage financings without erosion of shareholder value for the very reasons FSW cannot.
If the price gets closer to $1 I expect there will be another financing for NCI later this year. I welcome another one if it means the company will be able to support bigger contracts that are accretive to earnings.