I do not necessarily disputed your argument about whether I paid fair value or whether I as well as other investors should have been afforded the deal we got for cash.
Two considerations:
1. I and other accredited investors paid some fixed value thru a cash payment. Whether it was fair or not may be questionable but we were offered the deal by the company and took it. LP and pals paid NO ascertain able and fixed value. By any measure, IMHO, I do not feel commensurate with the extension value received. I was not cavalier with your investment money. Your statement is misplaced. The COMPANY may have been. Why should I and other accredited investors get a deal to extend warrants? Well, gee Kabu, why don't you ask management? The company is free to raise capital from whomever they want. They do not have to offer you the same deal. Just as long as they receive fair value, the deal they make with select financiers/investors is probably legal. Did they get fair value from me? Why don't you ask them? It ain't my fault that I am an accredited investor and you aren't so that you are not afforded such a deal. Well, my friend, boo hoo, that is life.
2. LP and other high roll investors, by the same token, can get even better deals than lower roll investors like me can get as long as at least a semblance of fair value is given in exchange. Boo hoo for me. It's just in this instance that, IMHO, no semblance of fair value was given and LP and friends got essentially a freebie.
To me that's cavalier. Did I ask management why? I asked the General Counsel himself. He asserted that you can value such a restriction but he failed to explain exactly how that value was arrived at. IThe value of the restriction is contingent upon certain events transpiring or not. We cannot know for sure whether these events will transpire. I would feel better if the extension of warrants were contingent upon certain events happening or not and spelled out. If not met, then the extension of the warrants would be vitiated at the end of the restricted period.
Why don't you call Les and complain rather than bleating about it on a MB? I did and maybe if more investors did, management and the rubber stamp BOD would think twice next time. Carry on.
