Dilution is an issue, but possibly not the overriding one. One key issue in this situation is that the $2.5 MM to be provided by the direct offering will not be sufficient to provide adequate working capital to support a competent launch in a major market.
Another key issue might be that the new European MDR regs may require a higher standard of clinical proof than is required for a US FDA 510(k) for a Class II topical wound dressing. ARTH had said nothing about this subject to date (other than to state that no new questions have been posed), so one can reasonabley assume that the new MDR regs are not introducing new issues. However, ARTH's silence on all matters encourages speculation.
In the meanwhile, $2.5MM will support the executives' and directors' cash compensation requirements.
News 
Market Data 
Discover 
