What the new agreement accomplishes.
It limits the number of shares that can be sold in order to protect the share price.
It creates a series "C" warrant that can be exercised to provide to pay legal expenses pertaining to the lenders and for "working capital" for Radient.
This is exactly what I predicted was happening with the discussions between the lenders and Radient.
Radient would intentionally wait for the current cash to run out before they authorized more shares. At that point, Radient has leverage. They could then say, modify the agreement and give us more cash for operations or we will go chapter.
The lenders obviously chose their best path to keep Radient in business while they continue to sell shares.
It was basically MacLellan sitting at the table holding a gun to Radient's head and telling the lenders they have to agree or he pulls the trigger.
The unfortunate longs here probably have no idea how close they came to bankruptcy in the past few weeks. FYI, this does not preclude bankrupcty in the future if Radient cannot obtain more financing. This just provides a standoff period for the lenders to sell shares.
"If any shares of Series C Preferred Stock are issued upon exercise of any Series B Warrants, the Company will use all the proceeds therefrom solely to (a) pay accrued and unpaid legal fees to our legal counsel (not to exceed $65,000 in the aggregate) and (b) provide ongoing working capital for the Company for a period of not less than ninety (90) days following the first date of issuance of any shares of Series C Preferred Stock"
I have never shorted nor intend to have any financial interest in this stock. I am not connected with anyone who trades, shorts or has financial interests in this stock. I only post facts and my opinions. I do not post on IHUB with different aliases.
