I honestly think this is a good step for FEEL. I think the jury is still out on whether this is good for the current investor. FEEL obviously needs money. They are obviously willing to convert shares to cash to do so. There is no way a person with a few extra scheckles wouldn't toss a grand into the current undervalued share price, but they may be a bit more business savy than the FEEL leadership. If they negotiate a flexible shares for funds deal where their quantity of shares is determined by current share price I will be running for the hills.
Death spirals are never fun, and publically annouced death spirals I have witnessed way too many times. If they find good investors with cash for a fixed number of shares then I am all for it.
I will be watching and praying I do not see the letters AJW, or the name of a particular hedge fund owner.
Here is the quick description of what I fear most:
- Strike a deal with a company like A.J.W. Investments where they get so many shares for a particular share price and more or less if the share price changes.
- A.J.W. secures the first amount of shares removing them from the market, and then they call A.J.W. Offshore Inc. who in turn naked shorts the shares, dropping the share price.
- A.J.W. in turn points out the reduced share price and takes additional shares to offset the drop.
- A.J.W. then calls A.J.W. Offshore again... and the spiral begins.
Think I am making this up. Go out to the SEC and do a search on AJW offshore. Hundreds if not thousands of dead companies surface. From the Juniper Groups 10Q (New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC (collectively referred to hereinafter as “NIR Group”)) Oh yeah and I got 1500 results with my search.
I am not saying that FEEL is going this path, only that it is easy for a company in need of money to fall for the trap. It is worth being cautious until we know they have secured funds from a decent source.
GLTA FEEL investors.
AI
