BBBabe...I mentioned this on the other board so I might as well say it here as well. If you are a "sophisticated" or an "accredited" investor, I suggest you call Athena.
The La Jolla deal changed the picture on the PP, but there is another placement being worked out. Confidentiality will prevent you from discussing the details, but my understanding is that the PP terms are being adjusted to make them more in line with the La Jolla funding and the dollar value of the PP has been reduced, again, because they have adequate funding assurances from the La Jolla deal.
As far as La Jolla is concerned, in general you are correct, it is much in the company's and shareholders interest for the share price to be higher than lower. Keep in mind that outside of the $500K ($250K now and $250K when SEC approves), this agreement will not execute for 4 to 6 months. IMO, there will likely be several other developments in the interim. Probably a few that you can think of yourself. It is difficult to predict what the sp might be at that time.
As far as limits, there are usually caps on the low end and high end. The high end cap is designed to provide incentive for the VC to hold, the low end to limit dilution to some certain known maximum number of shares.
BBBabe, IMO the usual crowd is just intent on drumming up fear. Is there the potential for mischief...absolutely. But they seem to be a pretty legitimate outfit from what I can see. They are certainly NOT TBF.
Manti posted a few of the companies they are funding over on the RB board. He made it sound very negative, but if you go in and actually look at those companies, none of them appear to be spiralling down due to La Jolla. In fact, a couple of them are doing quite nicely. I don't know about the individual business plans, or soundness of the companies themselves, that would take more time.
So to make a long story short...they're going to have access to the $8 million they were seeking. The amount of dilution it will cause is very hard to predict. But what we do know is that they'll have the cash to enable them to deliver on the promise we have all believed was there.
If it works out well, the company has the potential to become "wildly" profitable in which case they will have plenty of money to buy back shares. If it goes poorly, none of us are going to be happy with our investments.
But at least we're going to finally watch the rubber meet the road. I for one am anxious to see where the road takes us.
Later,
W2P