While I hate to see a sub-dollar secondary offering, I believe that the management will do whatever they need to do to stay in business. Albeit a secondary is not a viable option for long suffering longs, the CEO/BOD will not have any qualms raising the cash using the shelf of about 40M shares. Remember, those shares are already approved?
During the last secondary, most "stock advocates" cheered that those 10M shares were used as a ransom payment for shorts. Maybe, as we still have about 6.5M-7M shares unaccounted for. Now that the SI is under 3M, will that ransom payment theory fly again? I do not think so. Will there be any interest from reputable buyers to grab those newly minted shares? Hardly. Therefore, the next secondary if it were to occur would attract vultures and merciless predators. The raise will be accompanied with warrants attached, and these predators will just kill the company. That's what I'm afraid of, most of all other scenarios.
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