Chisy: No, I'm saying that they're setting a price upon which to base a private offering (ie, using the average of ten trading days' closings, for instance). Not unusual, and that way both parties can claim it was a fair deal. With the light volume, price could have spiked up and the buyer might have had to pay a higher price (yeah, wouldn't that be unfair? sheesh.).
Any means of raising money, whether private or public, would entail some dilution. Lev and the boys have been pretty stringent in trying to raise just what's necessary, hopefully at progressively higher share prices each time. What's important in the end is the average dilution after all the issuance is taken into account.
For instance, if the 'big PO' is not in time to do a secondary, they might be planning to do the secondary later in fall. Then they'd do a smaller private deal in the interim. The net dilution from the average of the two conversion rates is what matters in the end.
I'm just trying to read the tea leaves. Could be wrong.
Maybe they can just keep borrowing from Berg, and have next to no dilution. We'll probably hear during the conference call that they've tapped the remaining $7.5M of the $10M Berg line of credit (N.B. there *were* 'PO' conditions attached to those monies, if you go back to the original S-3 filing last summer where the terms of the loan originated.... so that may be another reason they 'formalized' the Hanil POs). Will they have to tell us if they're borrowing more? IF we get no financing announcement prior to the conf call, a loan would seem the more likely scenario.
Hope the guys who can ask questions ask some good ones this time. Lev's had it easy, lately. |
