Wave Systems Corp. (fka WAVXQ)

[cpa]

rachelelise,

Believe it or not, I agree with you. I wanted to see if anyone here could come to the same conclusion without contridicting themselves. You succeded!

Prior to the restructuring, most were saying the deal was good because Wave would get 4 million and extend their runway.
Now, Wave only gets 1.9 million and the runway is not extended as long.

The good part of the deal is less dilution and limited participation in future financing (as you pointed out).

The bad part of the deal (short term only) is that there are 1.9 million additional shares that just hit the market and most likely will be sold within 2 weeks, putting pressure on the stock. If there is no news from IDF, coupled with this pressure, the stock will drift below $3.00 by the end of next week, if not this week.

The laughable part of the 8-k was that they had to do this deal because they violiated NASDAQ listing requirements. In other words, the investors accept the deal or Wave gets delisted and you have no place to sell your stock. Purely comical.

CPA