The share structure has not changed and will not for at least a year if you intend to sell some at that point
In a dilutive mode you give me $1.6MM based on a VWAP. You want your $$$ back as soon as possible and will convert and sell at will until you get that $1.6MM back.
See the difference?
In the first case you gave me $$ because you believe that it's going to be worth much more in a year or more. You basically are investing in the company. You want to see the company succeed and you've seen enough to believe in it
In the ladder case you are in the drivers seat because I need $$$. You can kill the price of the stock and you really don't care - you just want your $$$ back plus some in the short term.
No offense but this is absolutely incorrect. Many companies acquire financing without diluting shares. I know there are those that would say at some point this company will declare their shares and then sell them, thus dilution. This is correct but there is a difference between near term dilution and dilution a year from now. Essentially the financing company believes that the BIEI is going to be successful enough to raise their share price to an acceptable level that it is worth the risk of being forced to hold their shares for a year. I would conservatively estimate that the expectation is no less than a four fold increase in current share price within that year.