ReWalk Robotics Ltd (RWLK)

[skepticone]

I have been thinking about this latest financing deal. The more I think about it the worse I feel. I may be looking at things wrong but I feel a bankruptcy filing coming.
I admit that I am no finance or business major but things are looking like the previous financers are setting themselves up for an out. Somewhere, I believe in the prospectus, the agreement allows shareholders at the time of the agreement to accumulate more shares than they would normally have been allow to. Purchasing the new shares and warrants and dumping them ASAP will net them much more of a return, even if at lower than .30/share than the pennies on the dollar they would get if they had simply waited for bankrupcy. After all shares have been dumped, who is left to get paid at bankruptcy? Us, the holder of worthless shares.(bagholders)

For example...

Kreos Capital V (Expert Fund) Limited, or Kreos V, has agreed to purchase in this offering 4,800,000 units and 7,200,000 pre-funded units at the applicable public offering prices for an aggregate price of $3.6 million, including the aggregate exercise price for the ordinary shares to be received upon exercise of the pre-funded warrants if Kreos V exercises all of the pre-funded warrants it is purchasing. We intend to use a portion of the proceeds of this offering to repay Kreos V $3.6 million for outstanding indebtedness under our secured convertible promissory note held by Kreos V and other related payments to Kreos V (including principal, prepayment costs and “end of loan” payments).

Kreos was owed $3.6 million, they bought enough shares and warrants to cover what they were owed, RWLK turns around and repays the $3.6 million they owed Kreos. Now Kreos can turn around and dump those new shares and warrants at whatever they can get, it may be at a loss but it is much more than the pennies on the dollar they would have gotten back on the original debt at bankruptcy.

Could the high volume be just that, dumping of shares on the market at just enough to maintain a decent return?

Am I just a conspiracy nut? Maybe I watch too many movies!