This type of financing is pretty typical for a small cap and/or high risk company. Yes it *could* be a death spiral, if done incorrectly, but if done correctly, it could be exactly what the company needs. Not having seen the signed documents myself, I would presume management is smart enough to limit or prevent short selling. And seeing as the amount is merely $2 million, it seems they were smart enough to limit based upon typical volumes. Yes, I expected a price decline, both due to this and to being ex-div, however, if you look at the low volume, it's not that big of a deal. Very few are selling. And that's a good thing. And even on higher volume days, most of the trades are at higher dollars, then a few bring it down at the end. That's not a true decline. That's just a few folks playing around.
Yes, GNBT is speculative, but so far they seem to be delivering on their promises. It's more than worth a ticket IMO. I like the $3.50 conversion price. It means the plan is to go well beyond that.
