Mr. Jacobs:
Three things:
I am very much aware warrants are not free and that they raise additional capital for the company. Let me try this one more time.
Assuming the share price stays exactly at $1.10, with warrants issued at a strike price of $0.88, the 'profit' to the holder of the warrant is at least $0.22 ($1.10 - $0.88). So, if I held this entire PP, I could ante up the $250000, hold 283000 shares, and sell the warrants on the open market for at least $0.22 / warrant (while paying no money, since they are not exercised), thus bringing my cost down to $0.66 / share. Unless what were issued were some type of hybriad non-standard warrants, this is how warrants can be used. (The theoretical limts of a warrant price are):
X; exercise price ($0.88)
S: Current stock price ($1.10)
Lower limit: $0, if X > S (not applicable)
(S-X) if X < S ($0.22)
Upper Limit: S ($1.10)
Anyway, regardless of the financing that was done, my real concerns are that this is enough money to get the FAST1 to production, which is sounds like it is, and the market potential, GP expected on each unit etc. Is there a 'target' sales, GP, and Net Income target for 1998?
Finally, I didint question you or your company's dedication or belief in the product - In fact, I am attempting to be in the same camp. However, as an outsider, I am required to ask the tough questions to be convinced that this company is unlike most others on the VSE (i.e. Hype, promo, but no substance to be found).
Thanks,
Chris |
