>>If we are so close to finding new financing with which to pay off the PP, do we need to increase the authorized now?<<
"Who said we were so close?"
Andrew, in a phone conversation with Paul Henry, he said we were within 2-5 months of finding the alternative financing. [Note: he was predicting the future. Do not accept as gospel.] If this financing were nailed down before the summer stockholders' meeting, it appears to me the authorized would not have to be increased. However, if the meeting occurs and the financing isn't in place, the company would have to increase the authorized to stay within the agreed-to terms of the PP. Now, the word coming from the company is that the low stock price is hindering efforts to obtain the financing (a deal now would result in too much dilution). You have alluded to the worst case scenario in which we are going to end up with 150 million shares. Consider this alternative scenario: a company injects $5.5 million dollars into TSIG by buying a chunk of shares at above-market prices e.g. $.50. For 11 million shares, TSIG pays off the PP (avoids 49 million share issue), and Gordon renounces RCLA (avoids 26 million share dilution). That would put the company at 91 million shares outstanding, no RCLA, no PP, with enough cash to make it to positive cash flow. This is realistic, IMO. Regards, Suzanne |
