"I read fully diluted and debt free unless those words mean something els. "
Yes, the O/S share count as of today are "fully diluted". What else would they be, unless there we underlying un-accounted derivatives or similar? There is nothing magic or anything about the words "fully diluted"? It means the shares are fully sold, liquid, and in the free trading market. Meaning they are not obligated via derivatives, or tied up in some convertible debt future obligation or any other number of possible scenarios. They're all accounted for and sold in the market. Big deal?
That present share count of approx. 34, 35 million shares was "fully diluted" and already known in Nov, 2014 at the filing of the last 10-Q filing. The share count is approv. 35 million shares today, "fully diluted", which means nothing new?
They have not sold or placed so much as ONE SHARE of the 10 million share secondary offering. When and "if" that secondary places, the common shares will be INSTANTLY diluted by approx. 30%, adding 10 million additional shares to common and bringing the new share count to approx. 45 million and not the present "fully diluted" 35 million.
There is no "magic" or even importance to the words "fully diluted"? It's in every 10-Q filing and 10-K filing. They also had no "debt" as of the prior 10-Q filing back in Nov., so again, it's nothing "new" to anyone who's read their SEC filings. It's just a fluff line in that 8-K, a repeat of their 10-Q filing info that's almost 2 months old now.
From the most recent 10-Q from NOVEMBER (old info):
PAGE 1:
"Outstanding at November 4, 2014:
Common Stock, $0.001 par value per share, 34,393,658 shares"
From the prelim prospectus, regarding the 10 MILLION (dilutive) proposed secondary share offering: PAGE S-6:
"
Common stock to be outstanding following this offering
44,612,718 shares (or 46,112,718 shares if the underwriters exercise their option to purchase additional shares in full)."
Meaning, "if" and when they can price and place and sell that secondary, there will be 30% NEW DILUTION and it will be instant. In return, OCAT will get funding, $50 million or whatever the case may be, depending on what they can net on the deal.
So what is the point? What is the "must read"? It's old information, already known in their SEC filings.
