Jean Claude, there is a very bullish side to that 423b, if they are filling now, sure there will be some pressure on the stock until they unload their 1.7 MM shares, but, the positive side is that they will be converting at the ceiling and since the preferred B is the last of the floorless, the danger of a death spiral once July comes around will no longer be there since they would have converted everything.
Yes the prospectus is still full of all the precautionary statements and you should listen to these, but that is about the same situation you had when the last S3-A was filed, so if you still liked the odds then, you should like them more now. Just as during the last S-3a there were major questions as to their ability to stay afloat beyond the end of March, the same uncertainty is present right now. If they get additional financing without ominous floorless conditions, then you know the lender or investor checked and made sure he'll get his money back. Otherwise, you are simply at the same place as before.
Zeev |
