Probably several reasons, but I dont really want to speculate. I dont know what the financial position of the acquired companies was, so I am in no position to make a statment. Obivously the sum is better than the parts, but I dont know any specifics. There is also a risk/reward factor at play. The managment of the acquired company is taking control of more potential $$ than they could get from an otherwise all cash deal.
My problem is the seemingly abscence of fiscal planning. Granted I have no idea what really goes on, but my take is: forcast your expenses and raise enough capital to go about your business. Everytime you ask for more money, it shakes investor confidence.
Like I said before, either Ron and CO. are extremely shrewd, or they need a better CFO. I am hoping he is shrewd and knows that this will be a vague memory down the line.
Remains to be seen.
