Replies to post #10290 on Wave Systems Corp. (fka WAVXQ)

[TonyMcFadden]

That's how I read it too rachel/elise, but since I'm not a 'cpa', I thought that 'I could be wrong'.

In any event, it's a non-issue in the grander (Lagrander?) scheme of things.

Hardware security at the edge is close (if not past) the point of no return. The inertia that Wave was experiencing as recently as a year ago has been converted to momentum...and what momentum it is.

The only question that remains is the size of the piece of an ever expanding pie Wave will be able to slice off.

BAck to the sidelines for me. real life beckons...

cheers.

[cpa]

rachelelise,

Believe it or not, I agree with you. I wanted to see if anyone here could come to the same conclusion without contridicting themselves. You succeded!

Prior to the restructuring, most were saying the deal was good because Wave would get 4 million and extend their runway.
Now, Wave only gets 1.9 million and the runway is not extended as long.

The good part of the deal is less dilution and limited participation in future financing (as you pointed out).

The bad part of the deal (short term only) is that there are 1.9 million additional shares that just hit the market and most likely will be sold within 2 weeks, putting pressure on the stock. If there is no news from IDF, coupled with this pressure, the stock will drift below $3.00 by the end of next week, if not this week.

The laughable part of the 8-k was that they had to do this deal because they violiated NASDAQ listing requirements. In other words, the investors accept the deal or Wave gets delisted and you have no place to sell your stock. Purely comical.

CPA