Henny Penny aka Chicken Little said "The sky is falling, the sky is falling", a common idiom indicating a hysterical or mistaken belief that disaster is imminent. Is it really? How about giving management some credit for being proactive in stead of reactive. How about having as many tools in your tool box to use should the unexpected happen? I equate the R/S to having an EZ-Out should a bolt head snap off. It's smart planning! You aren't expecting to have to use it but if things don't go as planned you have the means to work through the problem and move forward. Absolutely nothing wrong with that.
Remember institutions (fund managers) can't buy in until a stocks share price is above $5. That's for tens and hundreds of thousands of shares, not the tens, hundreds or couple thousands of shares trading now at 10 cents. A R/S to get to what ever their magic number is may not be all that bad if we can't initially get there "Organically".
Is it my preference, absolutely not but management has done pretty well for all to date. The majority of the 400 mill shares have gone to pay company employees, day to day expenses, the San Marcos facility and lab, etc. and not VC's. I don't see it being any different in the future.
That's my two cents.
Bill
