GulfSlope Energy Inc (GSPE)

[necrow]

Debt, for one. Not all of the outstanding debt owed to Seitz is convertible, so that portion isn't dilutive. Regardless, not really my point. I'm just saying that the number of shares they want permission to issue is concerning--the capability to issue 500M shares when there are 1B shares to begin with is troublesome. That's 1/3rd of an investor's portfolio gone instantly.

For individual investors like us, who are completely sold on the company, who cares? I don't, because the prospect of hitting it big here is still enticing and I don't have to answer to anyone. But for institutional investors with fiduciary responsibilities? That's a huge red flag. How do you explain to your fiduciary that 1/3rd of that position has evaporated into thin air?

I'm bought in on Seitz making the hard decisions, especially considering how much skin he has in the game. But if they had to do something that drastic, it would be very, very bad for the company's prospects. That's all I'm trying to say here: everyone operates under the principle of "Seitz will cure this company of any financial woes," but it's not always that simple, especially when the company desperately needs buy-in from bigger investors. I'm not saying to sell, and I'm not saying they'll make the wrong call, but it's undoubtedly a concern for me, at least.