No problem. I doubt I'm the only one who finds the recent filings along with the "units" a wee-bit complicated.
Are you not referring to a filing and verbiage that has nothing to do with what I posted? The 5.6 million share offering is specifically for payola to insiders and others. As you pointed out, the effective OS of "that" filing "EXCLUDES" shares related to the units. The units offer their own dilution.
The following was copied directly from the proxy as to why they wanted to increase the A/S to 500,000,000 shares:
Overview
We may issue shares of capital stock to the extent such shares have been authorized under our Certificate. Our Certificate currently authorizes us to issue up to 150,000,000 shares of common stock and 1,000,000 shares of preferred stock. No shares of our common stock are held in treasury.
In July 2015, the Company closed a registered public offering of units of the Company’s securities consisting of one-fourth of a share of the Company’s Series A Convertible Preferred Stock (convertible into 10 shares of common stock) and 20 Series A Warrants, for gross proceeds of $41.4 million. Pursuant to the underwriting agreement entered into in connection with the offering, the Company agreed to seek shareholder approval of an amendment to the Company’s Certificate increasing authorized capital to 500,000,000 shares. In addition to complying with the Company’s contractual obligations under the underwriting agreement, the Company also believes it is in the Company’s and shareholders’ best interests to increase authorized capital because of certain provisions of the Series A Warrants sold in the registered offering. The Company does not presently have sufficient authorized capital to issue shares of common stock upon exercise of all outstanding Series A Warrants. If the Company continues to lack sufficient authorized capital to issue shares of common stock upon exercise of the Series A Warrants when such warrants become exercisable, the Company will be required to make cash payments to warrant holders upon exercise. The Company believes it is advantageous to the Company and its financial condition to have the ability to settle warrant exercises with the issuance of shares rather than cash payments. Increasing the Company’s authorized common stock to 500,000,000 authorized shares will give the Company this flexibility.
Isn't that the exact reason I stated for the increase? And if the PPS drops to half of the .54 in my example to .27, the 40 shares from cashless exercise becomes 80 shares, right?
I apologize in advance if I have this wrong, but I don't think so?
