RE:RE:RE:RE:RE:RE:Analysis of Financing Greetings gentlemen.
I'm on the side of those who believe this deal was tied to a contract.
If it was a straight up money for shares exchange, I don't understand why the pp people would start delaying the closing of the deal instead of rushing to finalize it as the latter was to their clear disadvantage. The annoucement of the deal should have been a highly successful event in their eyes, as it pushed the share price right close to their buy-in price. A quick closing and their warrants might already be profitable.
Otherwise, assuming that the pp people went into the deal not having the money and then wanted to renegotiate requires a stretch of the imagination bordering on conspiracy theories. 6.5 million is NOT a lot of money in the investment world. It implies they would know a priori that delaying would cause the share price to tank and that Dyment, after feeling duped, would still happily renegotiate with them on disfavorable term for GSI in which he is the largest shareholder -not! Would Dyment even accept to negotiate with such small players who have difficult find a few millions in the first place is highly doubtful. These pp people have names, an organization etc. which can easily be vetted. If this is really what happened, then they desserve to be called Pi-Pi people instead!
As investors in a buoyant stock market, we may forget that many businesses are actually deeply struggling. Ridership revenues for transit companies have plummeted and stimulus dollars tied up by an incompetent senate and president (supposing this is an American deal) are not available for such companies to readily make future capital expense plans. So a company may have told Dyment they were rounding up the dollars for the pp AND the contract, and that would have to be approved by several layers of management including a likely very stingy finance department, causing repeated delays.
all in my humble and very speculative opinion.
cheers,
Hen