Zeev, you are, of course, entitled to your opinion and your interpretation.
Regarding the Series A, yes there is no floor. Meanwhile the 2 million dollars in question has a value of about 1.45 million shares at current prices. Of course you are free to concoct a horror scenario in which the shares will go to 1/8 and we will be looking at 11 times that number. However, the company does have a signed agreement with the preferred holders not to short the stock. If you choose to dispute this further, please call the company and do some research first so you know what you are talking about.
As far as the Series B, technically there is no floor, but effectively there is. Since you have carefully read the passage below, you know that the company has no obligation to sell any of these shares if the common shares do not average $1 in price over the 10 days prior to the sale. Sure the company still could sell the shares, but those of us who have some familiarity with managemnt understand they will not. One of the reasons is that they have no desire to dilute their own future wealth since they are substantial shareholders.
Finally, it is well understood by those familiar with the company that there are risks involved here. If the company already had a few deals, they would have a market capitalization similar to SLHO and be selling for $15-20/share rather than a buck thirty-eight.
Meanwhile, I wish you the best with your light therapies. A thousand points!
>> The Company does not have to sell any of the 800,000 shares of Series 1998-B Preferred Stock to the purchasers if certain conditions occur, primarily related to volume and the price of the common stock in the market. The Company has no obligation to sell any of the 800,000 shares of Series 1998-B Preferred Stock if the average daily share price for the common stock for the 10 trading days prior to the sale is less than $1.00 per share. << |
