Crook so you think it is in your best interest as a shareholder for Sigma to screw over one of their major investors over the warrants.
Legally yes they could let the warrant expire, but that investor gave the company 3.5 million dollars that they needed to keep going and did not need to sell even more shares at 0.01. Yes that investor got a discount on shares at 0.08 and they also got an additional discount by agreeing to the warrants, but also took on some risk. The investors could have held out and said no to the warrants and demanded the other shares at 0.06 or demanded the warrants at 0.08. But Sigma and the investor worked together and both saw benefit for both to do the warrants based on what they expected the share price to do.
I expect that Sigma believed that things would progress enough that their investor would get value from the warrants and both sides would be happy. However, things don't seem to have progressed as hoped (maybe Sigma's fault, maybe GE's) but Sigma wants to maintain a good relationship with their major investor that negotiated with them in good faith. Extending the warrants doesn't really cost the company at this point. The warrant shares were already "on the books" since Sigma expected that they would be exercised.
The 14 million warrant shares are 2% of the 618 million outstanding shares. So by letting the warrants expire would increase today's share price from 0.114 to 0.1163. I can live without that increase at this point in time. Of course if the extended warrants are issued in the future, the company also gets another $1 million on the balance sheet which offsets a little of our loss.
We buy a couple hundred thousand shares on the open market and that does very little for the company (no money in the company treasury) as compared to the $3.5 million that went directly on the company balance sheet from Rockville. I'm not going to whine about the extension because in the long run I think I will be better off if they keep Rockville happier than you or me. We have more to lose if Rockville gets pissed off. They could have 60,000,000 shares and Sigma is still on a penny stock exchange and vunerable.
If management played hard ball with Rockville with their power, how do think management will deal with your interests as a minor sharehold?
I'm with management on the extension, better for all of us in the long run.
AI
