Not good summary. The company has never proven to be a buyout or partner candidate. The logical point where the odds start increasing is on the end of phase 3. If the company had a buyer lined up, I think they could have paid off the convertible with cash, far better than 123 million shares. I can't imagine the noteholder had any power in the face of cash.
This is a case imo of bulls trying to put the best foot forward without checking how valid the foot is.
So the question why the 123 million shares? I don't know but my opinion only, Simpson perceived in the interest of the company.
Without buyout theory being a good theory, my theory is if warrants are indeed at near 4 cents, the more warrants that can be executed the better, as avoidance of worst case scenarios I will take over great financing deals that are not written in stone.
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