Mr. Vestor. Certainly a fixed-price financing is preferable to variable rate floorless financing.
However, in the last 30 days, the stock has been diluted by 1 million additional shares in return for a total of $6 million dollars. Which doesn't even cover the amount of their working capital deficit as of March 28. I don't think this is what this thread had in mind when it was abuzz in early February about how VLNC would soon be able to raise a large amount of money at higher prices, once they announced a purchase order.
At a minimum, VLNC has not met the expectations of this thread once again.
Additionally, this thread claimed that Castle Creek would be amenable to waiving the floorless provisions of the 2nd tranche, as they did the first tranche. If you recall, they waived the floorless provisions of the first tranche almost 2 months before the floorless conversion window opened. The 4-year window for floorless conversion of the 2nd tranche is now open, and there is no sign that Castle Creek has waived its variable conversion privelege. Once again, the pronouncements on this thread were wrong.
The fact that today's financing was sold at just under $6, and the recent large size at the bid suggests to me that somebody is drawing a line in the sand at $6, at least temporarily, and that is a positive sign. It might even be positive enough to suggest buying in the low $6s might be a good trading strategy right now. But I remain far from convinced that the problems of commercializing their product are behind VLNC.
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