Tonto: I've been wondering about this funding arrangement too. As I posted previously, there are 5,100,000 "extra" shares that have been issued, over and above the 6,684,750 shares that the merger agreement requires to be issued to RMCW. If shares are to be issued for the $5 milliion at 90% of the existing price of 1 1/16, it works out to approximately 5,100,000 shares.
If I were the person supplying the $5 million, however, I would be tempted to wait until trading resumes to finalize the deal. As has been noted by many others, stock prices usually decline after the resumption of a trading halt. Presumably, the person supplying the $5 million dollars is savvy enough to realize this. If the price were to decline to 50 cents, he or she could get 10,200,000 shares for $5 milliion, instead of 5,100,000 shares. A much better deal! For that reason, I expect, and IT IS PURELY SPECULATION ON MY PART, that the equity deal won't be finalized until trading resumes.
On the other hand, if the deal is finalized before the resumption of trading, I would take that as an indication that the person supplying the $5 million is convinced that the squeeze is about to commence and that the price will jump upon resumption of trading, a very positive sign.
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