Re-pricing of Warrants is unscrupulous at best...
Original terms as spelled out in SEC filings;
From May 22, 2013 S-1/A
The Notes have an initial Conversion Price of $0.17. The Conversion Price may be reset on the eleventh (11th) consecutive trading day following (i) the date on which a Registration Statement registering all the Registrable Shares is declared effective by the SEC, or (ii) if earlier, each of:
· the date the Registrable Securities may first be sold under Rule 144; and
· the date that any of the Registrable Securities are registered in a Registration Statement.
If the Conversion Price is subject to adjustment as set forth above, it will be reset to the lower of:
· the then-existing Conversion Price; and
· 80% of the average of the volume-weighted average prices for each of the preceding ten (10) complete consecutive trading days (the “Measurement Period”).
The Conversion Price may also be subject to adjustment upon any change of control of the Company, any subdivision or combination of any one or more classes of common stock, or any issuance or sale by the Company of any shares of common stock at a price lower than the effective Conversion Price immediately prior to such issuance or sale (a “Dilutive Issuance”).
From supplement #1 to the FORM 424B3 filed 06-12-2013;
Effective June 12, 2013, Fuse Science, Inc. (the “ Company ”) lowered the current exercise price of the Company’s presently outstanding Series B Warrants (which were originally issued in the March 2013 Financing) from $0.094 to $0.076.
From supplement #2 to the FORM 424B3 filed yesterday;
In a non-dilutive and debt free exercise to increase available capital for growth investment, effective June 27, 2013, Fuse Science, Inc. (the “ Company ”) lowered the current exercise price of the Company’s presently outstanding Series B Warrants (which were originally issued in the March 2013 Finance) from $0.076 to $0.055.
No where does it ever say re-pricing is at the whim of mgmt. The reason these terms are spelled out in SEC filing is to give investors a bit of transparency and clarity when making investment decisions. The terms were set but I guess that didn't matter. It seems the warrant holders didn't want to wait any longer to get cash out and get their money before something really bad might happen. I've never seen this type of re-price and it seems very suspect. Truly good news is probably not on the way if they had to re-price lower..If all news good things were happening than why re-price?? we'll see. JMHO
