Friday, July 08, 2011 3:01:40 PM
Another common "Pink Practice" is that companies barter shares at a premium in lieu of cash, in exchange for products and services from suppliers.
If those shares can not be quickly redeemed in the open market, whatever products and services were being provided, cease being provided.
SFIO's management is scrambling now. Expecting them to put out a PR with all of the answers, this quickly is not reaseaonable. They are short key players who shouldered responsibilities that are now in other hands.
Those who remain are in the middle of determining how they are going to fund the company and "keep the doors open". Their business is definately not operating as usual.
Dilution happens in many forms in small companies. If their standard and most reliable funding source (the open market) is choked off, they need to find a "deep pocket".
They're in debt up to their eyeballs and beyond, it's not going to be easy.
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