Ok fair 'nuff you are asking legitimate questions. So I will try to give you the answers. First I dont know where that info came from, but its not true. In fact just the opposite. We know we have a liquidity issue, we are using the warrants as part of this to get the the stock more liquid and then we are using the forward split to not only increase the liquidity but to also give the warrant bearers the chance to also participate in the forward split... also.
I am the CEO of CVIA, so there is no they ... I post information publicly, and really try to stand behind the things I post... not only to you but whoever may be reading this information, for all I know the SEC is one of those reading these posts also... and thats fine with me, I try to give you and the public honest answers.
First these warrants were not my idea, they were inherieted from the past administration. But followed through on something someone else started, I will be the first to admit I dont like warrants, but chose to honor the terms that where set before, I had any say in the matter.
Like you said you can let the warrants expire, and some people will do this, so its kind of hard to budget the unknown. But most importantly the money that the warrants generate will be used mostly to hire a support staff, make some acquisitions and fund a few more impartial third party IPO's.
Now there is really no dilution taking place, because the book value is significantly less than the $3 strike price. So the inbound capital will really be bringing the book value per share up.
We chose to do this forward split following the expiration date of the Warrants, simple because we are trying to offer a better deal for the warrant holders and also to improve the liquidity and the volume traded per day. So yes the forward split was done with both the warrant bearers and the overall shareholders in mind.
Basically like every other company on the market, we could have chose to sale stock on the open market to generate capital... but didnt, because we knew that it would hurt the current shareholders... at this very moment anyone that executes or executed their warrants at $3 could immediatly turn around and sell at $4. So it is a two way street, the company has to make money the shareholders have to make money. This was done with the shareholders... the ones that took a beating on this 300 to 1 reverse split in mind, I know because at the time of the reverse split I was the largest shareholder and was mad enough to do something about it as was other shareholders. So I have been really focused on restoring the value to this stock.
I hope this answered some of your questions, if not I will try again, but we have been and will continue to honor these warrants... I am speaking for the company when I say this, and if you dont think I am honoring what I say... well you know where to find me.
KAA
CVIA CEO |
