100% correct, though I didn't understand your last paragraph. I don't think it's don't TO undercut the current investors, though it absolutely does, but it was done due to lack of ability to raise money any other way.
Why there was no other way to raise money will only be a guess, but I'll offer up a few possibilities; lack of experience, forces that don't want competition, as well as incompetant past management. Current management has made progress and we will have to see how well they finish.
Sound crazy with the 'progress' comment?
1) Warrants are over
2) Phase II trials, multiple trials, going on that cannot be ignored once data starts to flow out.
3) R&R involvement, new hires, CHAVI, DOD money, etc.
I'm not happy with where we are or how we got here, but looking at the situation, I'm not selling now and I believe we have a good chance for positive moves in the next 6 months.