Investment dollars? Feels more like a great deal for this private placement. They are getting current shares @ 2.500 per share and 300,000 FREE warrants to convert those warrants in the next five years at a cost of $3. At current prices those warrants already have a value of $150,000. At last night's prices, before this dubious deal went through, that deal had already netted them $300,000.
In addition, "Scorpion received 200,000 five-year warrants at $3.00 as consideration for arranging the financing."
In other words, to sell this terrific deal to themselves and "NewLight Associates", whoever they are, the principles of Scorpion also receive an additional value of 200,000 warrants for FREE, with current value of $120,000, last nights value was $200,000. (It wouldn't surprise me to find out that in out age of creative financing "NewLight" turns out to be an entity for some of the principles of "Scorpion".)
Sounds to me like we all just got stung by the "Scorpion". I would have been happy to get together a consortium of "investors" and we could have put up the $2mm for shares @$3, -forget the warrants. Was this the best deal management could get? IMHO, this was NOT a good deal for current stockholders. |
