An exercise price is an exercise price...Unless you think the smart thing to do is wait for a drastic increase in share price and get substantially less shares for your money.
This is exactly the same principle as preferred shares which have huge voting power.
That is the simplest and easiest way to understand it and why it was done!
Very simply put what's going on here at ALRT is what's called a poison pill so that some company doesn't think they can come in and buy up 51% of the outstanding shares thinking they can get control of the company and the rights to the device for pocket change instead of paying $bn's!
I think it's a very shrewd move by the CEO to make sure he gets his investment back and also makes a good amount of money when he either sells or licences the rights to the device.
This was the cheapest way to ensure the CEO kept control of the company.
The reason he stopped filing was to save money specifically to concentrate on developing the device and getting FDA approval.
I read somewhere else this week that to go current it takes an OTC company $100k to get all their filings up to date when they fall behind by a couple of years as this company has. That $100k is what he's been using to keep the company running as well as ploughing a heck of a lot his own money as well.
The most important thing is - IT WORKS and has been approved by the FDA!
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