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slapper990

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slapper990

Re: ~Drex~ post# 16111

Wednesday, 06/19/2013 10:10:38 PM

Wednesday, June 19, 2013 10:10:38 PM

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If we have to buy it back at the future fair market price, how is that equivalent to a collateral? It is giving away part of our company, but maintaining the option to buy it back. We can take a significant loss if market price increases to say, $1/share ($100M market cap).

Seems equivalent to 100% dilution to me, but with the option to buy it back.
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