Hi Andy,
I fully share your concerns as I have first hand experience with these types of financings. Unfortunately, my experience tells me that those institutions are not in for GMGC sake, but just for the sake of making a quick buck. That is all they do, and they constantly do it. They have no feelings, all they need is good liquidity to get out. These financings are structured in millions of different ways, but eventually in most of the cases these institution start to sell against the box almost immediately. They are always covered by their preferred convertible, so they can do whatever they want. Believe me, the company will tell you that this is not the case, but unfortunately, it is.
In fact, I have chosen to sell my position today. In a couple of months this will be all over, so I have plenty of time to get back in. If, of course, there is earth shattering news, all I said here becomes obsolete.
Best wishes to all,
Frank |
