I nearly fell out of my chair this morning while looking at level 2, pre market. I had expected this to open 10-20 cents lower after this new "financing" was announced. So I'm at a bit of a loss as to whether to get back in now, or wait it out. Does anyone know if the .85 cent shares have a restriction on when they can be sold by the recipient? Can they dump them now? Or is there a waiting period.
I'm a little bothered that the company didn't sell additional shares on the open market. They could have gotten 50% more than the .85, as well as there wouldn't be the preferred shares, plus the follow up warrants. Or borrow half and get the other half from sales of shares on the open market. It appears that it was just too good of a deal for the recipients. And the recipients of that good deal appear to be mostly insiders. Kind of like enriching themselves at the expense of the investors.
The other thing that bothers me is that, if my memory serves me correctly, Marc Geman said something about having a substantial amount of money invested in the company, which was $300,000. That's not substantial in the restaurant business. And especially after the money he should have made from selling the pretzel company to Mrs. Fields. Does it bother anyone else that he has so little skin in the game?
Kind of reminds me of someone else I'm a little suspicious of. Wink Wink.
