When he brought it up in a shareholder letter (I believe is where it was) many of us said it was going to happen and it was going to be sooner than later. I couldn't understand why he would even bring it up if it wasn't in the near term. Those of us that stated this were told it would not happen and the reasons why. No pointing fingers now, it is time to move on now that we know the r/s is indeed taking place.
Now, the key here is that "if in fact" the share structure is indeed "enough to carry us through" then there should be no further dilution after the r/s. However, I just am not that optimistic. I have always stated I did not trust Vanis. I trust Ezra more, but I wouldn't turn my back on either one of them in a knife fight. I have not read thru the complete document, but it is my understanding that A/S will not be decreased. This (if true) is scary as hell to me. What kind of hit does there preferred shares take if a r/s? This was his intention all along and the "loyal shareholders" are taking a beating at the hands of the man they stood beside and the company they kept going.
Going forward I would not buy another share of this until after the r/s and after I start seeing financials support the debt structure of the company. Positive financials able to move this company forward is the only thing that will keep dilution off the table...unfortunately I see dilution happening between the r/s and that time financials are positive. It is unfortunate, but many that have played the OTC game for any amount of time has seen this game time and time again and there is a very high percentage this will not bode well for those shareholders.
GLTA
AI
