To Invests question, I would think that if these shares were convertable, that they would involve a public offering - TOVC common-- BUT, I'm neither an attorney nor a expert in these matters. It does strike me as an unusual transaction in some respects. I agree with Torvecian that it can probably be viewed as positive: who'd want to lose $150K? On the other hand, why would you make a special transaction for such a relatively small amount of money in the scope of the amount that the company needs to accomplish what it says it can accomplish? $1.5M maybe but $150K? Just seems unusual.
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