Hey Proto,
The 10G/40G targets could be milestones similar to the way LWLG is targeting 2.5G. The idea is to prove the concept first with a conservative target then ramp up to meet specs.
As far as the dilution, here is Mack's post from yesterday on Agoracom:
Career suicide, certainty of success, other?
posted on Nov 13, 16 11:54AM
We have had a long time to consider what has occurred to our share price over the past month. We must consider the fact that the execs and the board had to look at the share price, and this deal, straight down the barrel, knowing exactly what the share price was going to be after the deal was set, and they still decided to move forward. They looked at the loss suffered over that period of time leading up to the PO, and still decided to accept it. Why?
Forget the election chatter, no one saw that coming. Self destruct mode? Do you intentionally bankrupt the company to reclaim it privately, on the cheap? Is that really possible, and how do you get the Board to sign off on that deal? Not likely.
The only way I sign off on that PO, knowing the decimation it would cause, is with the knowledge - the certainty - that there would be catalysts substantial enough within a relatively short time frame to overcome the damage caused by its terms. Otherwise, the risks (the potential liability, the personal exposure and damage to reputations) in accepting those terms are ridiculously high. So in the calculus, wouldn't the certainty of recovery have to be at least equal to, or greater than, the certainty of the known loss to shareholders, and the repercussions that may entail?
Now, in this year of 'up is down, and down is up' nothing is guaranteed, but for people whose careers are defined in disciplines that require them to excel at very complex and precise calculation, what is the probability that they suddenly and arbitrarily threw caution and reputation to the wind, and accepted potentially lethal terms, unless they were dead certain of a far greater return ? So, suicide, or certainty?
Considering that almost anything less than certainty is simply unacceptable as well as severely damaging to the collective reputations of execs and board members built over decades, I lean toward the simple fact that, across the POET Board, self preservation far outweighs the likelihood of mutually assured self destruction.
Message to management: expectations for execution has been compressed in proportion to decline in share price; that means we expect results now, proof now, promises of disruption in the future can no longer suffice. Deliver.
