Actually, though your post was intended to be negative, I understand better where the extra shares came from. I also see some good attempt to avoid the floorless convertible problem, or at least control it. If you were providing financing for a company, especially in light of Barrons or the London paper article (which had to be retracted), you would want to ensure that if the stock price went down before exercising your option, the conversion price could be adjusted. I like the "one time" adjustment feature that Osicom built in. This prevents the yo-yo effect that some professional stock manipulators use.
I'm not happy with the results, and can't say I give management 100% trust, but companies do need financing, and Osicom is not the first to suffer from stock price declines resulting in additional shares being issued. Face it, the CEO doesn't want to see his and his wife's 2 - 3 million shares go down in value, either.
Now putting this in perspective, 21 million diluted shares won't look too bad if they reach the $1.5 billion or better market cap that some communications equipment companies have reached rather quickly. Very possible! |
