Telkonet Inc (fka TKO)

[reallybadtrader]

Much better than issuing shares. Terms look good, 6% plus warrants at 4.17. The warrants are issued to sweeten the deal and bring the interest rate down. If those warrants are not there the financing term is much worse.

Warrants are not issued shares, once they are purchased, the company issues the shares, not before. This does not dilute the stock now, it would only dilute the stock when the are actually bought. The lender is not buying these warrants until the stock trades above 4.17 anyway.

Based on the amount on the 8k it looks like they dont anticipate much of a liquidity strain in the coming months, a possible sign they will be cash flow positive soon.