ND, I think that you are missing the point. The question is not who has the right to ask the other for conversion or access to the leaky convertible, the question is who has and will have the need for cash. REFR has a long way until it is positive cash flow, they have a well defined burn rate, that is the rate at which they will access the cash in the leaky floorless. The equity line being floorless, it assures that the price of the stock will be on a continuous downtrend. As an example, please look at the chart of TTRIF, they had exactly the same situation, access to an equity line convertible at market price. The number of shares in the last year has gone from 45 MM to 126 MM and the price from $3 to $.25. It is REFR's appetite for cash that will determine the outcome of this situation and anyone that is oblivious to that fact is putting capital at risk.
Last, I love those, "if we get 1% of the market we have $100 MM in the bottom line". If (a big if) REFR gets 5% royalties on the wholesale price of the product (manufactured under a license), you are talking about $4 billion in final sales to get $100 MM into REFR's bottom line. If $4 billions is 1% then the "market" addressed is $400 billions, and frankly, I do not know many markets that are of that size. I wonder if you could elaborate on this BS a little.
Zeev |
