It's all a big riddle to me; honestly while at work I can't analyze the numbers. I just hope they get the funds they need and that investors see an issuance of less than 14 million shares. Less is more to me. :)
you lost me in your 2nd paragraph. nobody is getting 20% ownership. the problem is that nasd says they cannot do an offering of over 20% of current outstanding shares without a shareholder vote. My somewhat vague recollection of the outstanding total was about yours - 115-120M shares. So 14+7 would not be a problem.
It could be as exwannabe i think mentioned, that not just the 50% from this deal but also all the shares bought by the prior investor with the 50% right could be included - if the smash that offering in with this one as a single offering just because that guy participates so it all gets combined as one.
That seems a bit counter-intuitive because this is a new deal; however that kind of interpretation is what Nasd raised and sank the MFN deal (YEAH!). And that way it's close enough that the numbers maybe do add up to 20%.
If so they just adjust the number down to the new guy and issue 50% of those to the old guy. Doesn't seem like a very big deal to me, though it probably should have been anticipated given the way the prior situation was judged which was a bit similar to this.
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