First off, it's a matter of insuring that long-term shareholders recieve some sort of return on their investments - something is better than nothing. Secondly, it's a matter of at just what level a potential suitor might say "what the hell, it's a rather minor investment", and third, there is a limit to what premium a suitor will pay. As "capital gains" stated, why not just pay a quarter. Obviously, such a tender offer could be made, only surely to be rejected, or at worse for the suitor, start a bidding war.
However, what I really question, and have posed this question to Mr. Piazza, is just why isn't La Jolly Capital Partners, LLC, Mr. Piazza firm isn't funding CSMG or LTC. Looks kind of bad that Mr. Piazza as CEO designate, who also owns a private equity firm doesn't want to fund the company he is to run.
La Jolla stated mission is: "La Jolla Capital Partners, LLC was formed to assist young and mid-sized companies through all aspects of the challenges they face. With special emphasis on capital formation as well as marketing & sales challenges and M&A acitivites, LCP can provide specialized support to meet the needs of the client. LCP’s network of experienced healthcare executives provide expertise and support in a wide range of sectors including medical devices, pharmaceuticals and biotechnology as well as healthcare services.
While the firm is fee based, stock incentives are often a major or key part of our compensation. The firm prides itself in adapting the specialized needs of young companies. "
