Sedge,
I will attempt to field the questions you have presented and I hope my thoughts make sense...
First and foremost, there has been little to no dilution whatsoever at this point in time. Even though the AS was increased months ago, it was primarly done for the sake of how tight the situation was upon conclusion of the reverse merger.
(Options/Warrants/Leverage)
With the increase of the AS, this will allow MMRF "strategic wiggle room" to accomplish their goals, until we achieve profitability.
(I believe Q1 - Q2, 2010)
If management was insensitive to the situation they would have went after using up the entire AS as quickly as possible, and actually they are moving slower than I expected...
(Keep in mind approximately 50M common share potential is owned by Mr. Lorsch & the RHL Group, so heavy dilution hurts his position more than ours.)
As for Dutchess, I believe management did a great job on the negotiations and terms, and in regards to the "big picture" it's a LOC and at most could add 100M to the OS, so very smart and strategic from my point of view.
As for the share price, you have to keep in mind that there were a lot of retail investor's who jumped in to FVRL when it broke below .05 and dropped to .01.
(We made the right move because we didn't believe FVRL would go BK. It touched .01 in the fall, and then again in December 2008 (.011). Once the non-binding was in place on 10/28/09, I was completely convinced we were in the clear and added a shitload of shares at .015 - .02 on the "December insider selling plunge". Tulaz, Warren, Bum, and myself were just a couple of the retailers at the time, and combined we own millions upon millions of shares from this level.)
Basically what I'm saying is there were plenty of retailers gambling on FVRL's survival and they had the opprotunity to build large positions very low.
(Think about it for a second. If I bought 1M @ .015 and sold them today a year later, at .075 would it matter? Sure, I'd be pissed I didn't sell them at .30, but hey, I still made a huge percentage profit off the investment.)
Anyway, besides the MM's playing into the low/weak buying pressure over the past couple months, I have to believe it's a retailer who picked up a ton of shares last year who has been slowly liquidating.
(Also keep in mind HDSN was the MM who absorbed almost all shares being dumped when FVRL went to FVRL.PK then FVRL.OB, then things were finally brought under control when the MMR deal was announced. If I remember correctly the OS was around 42M at the time and I believe about 15M was in strong hands so about 25-30M shares were absorbed, at a very low PPS...)
Futhermore, we are on the verge of something great, and MMRF is going to be huge if we exercise patience. Add in some solid AntiCD-20 value and this baby is a homerun...
Keep in mind Seymour and Longenecker didn't hang around MMRF until June 30th 2009 just for the heck of it, or for their experience in regards to PHR/EMR technology... Ha!
Best Regards, Bernie
AI
