Quote from Yahoo message board. I agree.
News Broken down:
The amendments to the Series C Warrants provide in material part that once the current Authorized Share Failure (as defined in the Series C Warrants) is cured through either the implementation of a reverse stock split of the Company’s common stock or an increase in the number of authorized shares of common stock,
----( The warrants that they FAILED to convert are still going to be converted after a RS or INCREASE in the number of authorized shares of common stock) (EXACT same dilution that was occurring before will soon start up again)
the Series C Warrants will then be exercisable for only 25 more trading days.
----(Means that the dilution conversion will happen all withing 25 days of the RS or increase in shares, it will be fast and complete this time)
Upon the expiration of the 25 trading-day period, any remaining issued and outstanding Series C Warrants will be automatically deemed exercised based on the cashless exercise formula as currently contained in the Series C Warrants.
----(Means warrant holders will absolutely want to do the conversion within the 25 days)
The amendments also clarified the ownership position of the Series C Warrants relative to the Company’s common stock prior to exercise of the Series C Warrants and clarified that additional standstill periods will be granted for future Authorized Share Failures, should they occur.
---(Means they don't know that even if they increase the share count will be enough for the conversions, so they needed to add statements to cover that possibility)
AI
