That is exactly what happned. I am curious as to when this deal was struck. If it was after the S-1 went effective then there is NO WAY the offering was oversubscribed for the offering stock to be available at the close of the SC transaction. If it was before the S-1 went final then they failed to disclose material information regarding the transaction.
Ridiculous, I can't even understand your misconception of the transaction. Simple math. Verified by AGP. "VERB has 4 million dollars more now to work with". I'm sure you will hear more about this at some point, but pretending it didn't happen is silly, just because some don't get it or for some reason don't want to.