Replies to post #33832 on Sphere 3D Corp (ANY)

[Hugodrax]

""" at undeniably much better terms than the last financings"""

Ummm.... I disagree. Completely. While the % warrant coverage is lower:

a) The purchase price is 30% LOWER ($2.33 vs. $3.30). Sure, "better"

b) Warrant exercise price is 30% LOWER as well (two financings ago they were above market.

c) The prior warrants didn't have price protection. In this case investors get additional $0.01 strike warrants if they raise money at a lower price. Obviously they are contemplating this eventuality.

d) They RETROACTIVELY amended the Aug 10 purchase agreement with MacFarlane to give him RETROACTIVE price protection, such that he gratuitously just gets repriced from $3.30 to $2.33, via issuing him 252,308 new shares, for nothing.


Adding further insult, they kept the deal open between Sept 22 and Oct 6, allowing people to watch the price, or even sell out existing shares (with the nice bump to 2.75) and then decide to invest at $2.33.

What they should be doing is a rights issue, to give all investors the chance to invest in these outrageous deals. Instead they are just handing your wealth to cronies.


Again, "hot" tech companies don't need to raise money like this. IMHO.