Author’s reply » Stromus, it's seems pretty clear that the unit "investors" were only in it to make a quick buck and dump their common immediately after the break up. Unfortunate that this is the type of "investors" that their IB, Dawson James, deals with. And, yes the market weakness certainly didn't help the situation. But the dilution from the break up - which includes almost 11M from preferred converting to common (4 for 1) was already a given and known that it would happen. So the basic o/s share count is now about 18.5M (although might be higher as I don't know how many, if any series C warrants were exercised between Aug 12th and today). GBSN announced the other day that they intend to redeem the series C warrants (~22M common equivalents) with cash - although not sure how many of those they intend to or eventually will settle with cash. Strike is $2.55 so those are way out of the money right now. So the break-up was a given and I don't see the massive sales by the preferred investors as indicative of anything other than them looking to cash out. Hopefully the company and their IB deal with legitimate investors in the future. |