Doesn't PR equal Dilution for current common shareholder?
Excellent Question; let's examine it..
I need money to operate, so you loan it to me. Now I have money, and I am happy.
I give you a note allowing you to buy my stock at a penny a share. Now you are happy.
Win-Win, right? Not exactly.
The stocks that I am allowing to you purchase will be created out of thin air, and added to the float. That's called dilution, and ultimately decreases everyone else's share value if this company doesn't get it's drug approved.
So, it's a Win-Win-Lose situation, and has been predicted here for the last six months.