Geo,
I have a great deal of respect for your posts as well but, I know exactly what I am saying on financing and I really have to disagree with you on this one. Everyone knows that the small loan with the big lien on IP is easy to reconcile (in fact it runs off in the next number of months) but, it is symptomatic of the larger poor thinking in the financing area.
For ten years now this same BOD and same Mgmt have carried a "going concern" letter because they have never properly financed this company ---ten years-- a decade. The modus operandi is to defray some cost with Avid and to keep selling equity through pipes or ATM. THAT GAME IS OVER whether they know it or not. Let's say for example that they have created three billion dollars worth of potential value in future product. They just sold 10% of that for $6mm. If they stay on this course they are going to sell 20% for the next $6mm -- everyone knows that the last money in when you need financing is the cheapest. Just look at the history of the last ten years.
I'm just trying to goad them into some other course of action. Leveraging or partnering up even prematurely in a "loss leader" on some part of the pipeline is preferable to giving the whole company away as a sub dollar stock. Or sell "imaging" or (as even SK raised the issue) license viral. Anthing is preferable to this moronic sale of the company for less and less value.
I know you love the science as much as I do, but surely you realize this course of action can not continue if the shareholders are to realize any large value. I'm just trying to goad them to move on "plan B". If they have a better idea than any of us that would be fine but it is time to talk about "plan B" because "plan A" logically leads to a sale of the whole company for next to nothing.
Regards,
RRdog
