None of those other companies have the below problems raising money to stay alive, in addition to the "Going Concern" clause. XYBR had to borrow at 10% interest and also give warrants for 302,500 shares for 10 cents a share -- can you say desperate? 302,500 shares at $10 is more than the $3 million they borrowed (assuming the lenders can sell all those shares over $10 before everyone else that's getting these cheap shares dumps)... Think all those shareholders from under $4 will hold their shares during this selloff?:
quote.bloomberg.com
The annual report also revealed funding arrangements for the
$13 million Xybernaut raised so far this year, including shares sold for well below market price.
It sold 647,500 unregistered shares in January for $2.46
million, for an average price of $3.80 a share. That's less than
half the $11.20 average weighted price for the 60.1 million shares
traded in January, according to Bloomberg analytics.
Davis declined to give the dates or the market price of the
free trading stock when the unregistered shares were sold.
Xybernaut also borrowed $3 million in January at 10 percent
interest. The unidentified lenders received an added inducement:
warrants to buy 302,500 shares of stock at 10 cents a share.
In January and February, the company received $7 million as
it issued 1,867,700 shares at an average price of $3.79 to
investors exercising warrants received in prior financings.
An additional $618,970 was raised from employees and
consultants exercising stock options for 231,842 shares, at an average price of $2.67. |
