Nephros Inc (NEPH)

[zinn21]

Facts:

1. Neph needs additional funds to stay in business.

2. FDA meeting info is not yet known but the timing of this offering is exactly the same day (Oct. 15) that the 30 days from meeting expires.
3. The offering kills all shorts. Makes their short shares worthless.
4. Share price is holding in high teens.
5. As the offering is written it minimizes dilution for shareholders.

a. if you owned 10k shares and exercised all offering options it would cost you an additional $875 and after a 20-1 revers split you end up with 2593 shares with 2093 of those shares exercisable for purchasing additional shares at a ratio of .92 @ 2 cents a share.
b. thus you would hypothetically end up with 2093 shares and if 20-1 split happened today the stock price would be $3.60 a share with the option to buy an additional 1935 shares @ 2 cents a share. That would cost you 38 dollars to convert units to share that would be worth $6966. Your 2593 shares are worth $9334 for a total share value of $16,300.
c. Simply stated if your hypothetical 10k shares are worth less than $16,300.00 currently, this offering is a good deal..