"The investors purchased their shares at $0.08 per share, and also received warrants to purchase additional shares at $0.12 per share, together with profit participation in the recently acquired technology"...
The reason you don't see dilution in the stock... is that they are opting instead for directly diluting the underlying value of the profit centers rather than diluting the shares. I'd rather see them dilute the shares without structuring inherent conflicts of interest that divide the shareholders interest in classes. I'd rather have them sell shares and drive the price down, than have them reduce the underlying value through dilution that benefits some shareholders and not others.
We saw that first on the renegotiated contract that took away a large portion of the value of the JV, by limiting the value to LNGT under that contract to cost plus 10%. Now we're being told that we are seeing more of that sort of dilution... we get the $1.1 million in PP $$, but lose a large, direct, long term value... as each common share now owns a lesser portion of the underlying value. The bulk of the profits from any success will be skimmed off the top and go to the select few... to LLSR under the JV... here to the new investors as profit participation in direct ownership of the new technology.
It seems LNGT will survive... but that the cost of survival is going to be surviving with a WHOLE lot less upside potential.
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