I don't suppose it's the dilution itself that bothers me, but the sense that the company's doing something very important behind our backs.
I don't understand why in the earnings press release that mentioned Amber we learned that they'd aquired 12% of oustanding stock, but it turns out in this EDGAR filing that they are going to own 28% of the company (and in the 2nd note following that, it says they have voting rights to millions of shares beyond that). I guess one files to take a 10% (OR MORE) stake in a company, and doesn't file every time the stake gets larger? I really don't know. In any case, it looks as though they only told us what they absolutely had to in the press release. And my sense is that they're always the most forthcoming when the news is good, and the least so when it's not.
And then who is Amber, and why is it a secret? You'll notice (also below) that it's the Custom House Fund that's located in Ireland. As far as I can tell, we still don't know where Amber is, and we definitely don't know who it is.
I appreciate very much that JTS needed additional financing, and I'm glad that they got it. It's more of an issue of HOW these things are done that gets to me.
NUMBER OF SHARES
OF COMMON STOCK PERCENT OF TOTAL NUMBER OF SHARES OF SERIES PERCENT OF TOTAL
BENEFICIALLY BENEFICIALLY D PREFERRED STOCK BENEFICIALLY
BENEFICIAL OWNER OWNED(1) OWNED(1) BENEFICIALLY OWNED(1) OWNED(1)
- ----------------------------- ---------------- ---------------- --------------------------- ----------------
<S> <C> <C> <C> <C>
Amber Arbitrage LDC(2)....... 55,748,604 28.0% 8,163 79,4%
c/o Custom House Fund
Management Limited
31 Kildare Street
Dublin 2, Ireland |
