James the S-3 is a public record of the purchase of stock and stock warrants by investors in the company. In the long run it may result in the sale of the stock and stock warrants if certain time(I think a year?) and dollar value requirements are met by the purchasers and the stock itself.
So for now it means more working capital for Cyclopss. In the future the possibility of added stock delution exists. Another two million shares. It's not a bad thing considering it keeps the company on solid financial footing. It only shows the willingness of informed investors to underwrite the company's future.
I pulled one of the paragraphs for you to refer to:
This offering pertains to the possible sale of up to 2,000,000 shares of the Company's Common Stock by the Selling Stockholders. The Shares offered hereby are issuable to the Selling Stockholders by the Company upon the exercise of Class A Warrants and Class B Warrants owned by the Selling Stockholders. The Class A Warrants entitle the Selling Stockholders to purchase from the Company an aggregate of 1,000,000 shares of Common Stock at $2.60 per share. The Class B Warrants entitle the Selling Stockholders to purchase from the Company an aggregate of 1,000,000 shares of Common Stock at $2.75 per share. The Selling Stockholders may, but are not required to, sell the Shares subsequent to their acquisition of the shares upon the exercise of the Warrants. The Selling Stockholders are not required to exercise the Warrants and if exercised, are not required to resell the Shares issued to them upon such exercise. The Company will not receive any proceeds from the sale of the Shares by the Selling Stockholders. The Company will receive proceeds from the exercise of the Class A and Class B Warrants, to the extent such Warrants are exercised, and such proceeds will be used as working capital by the Company. (See "Use of Proceeds.")
Regards, Jeff |
