Replies to post #1045 on Echo Automotive, Inc. (fka ECAU)

[honeybadger]

I don't get it -- why would you think that investors who buy a stock for above-market price are shrewd investors? Wouldn't it make more sense to just buy the shares on the open market, or to get some cozier terms?

I'm looking forward to reading the SEC filing on this private placement.

[hondaboost]

Yep, ECAU was $3.6 in Jan. now, just $0.39, LOL! Now, it did financing at $0.5, LOL!

[236T568]

The only problem, as was later disclosed by ECAU, is that the warrants are not .75 warrants - they are the lower of .75 and the 10 day average stock price before the exercise date.

from the 2012 10K/A:

“…a warrant (the “Warrants”) exercisable to purchase one (1) share of common stock of the Company at an exercise price equal to the lower of: (i) $0.75 per share or (ii) the ten (10) day volume-weighted volume average price per share of Company common stock immediately preceding the exercise date, exercisable over an eighteen (18) month period (the “Warrant Shares”)…”

Interesting to see that real investors (not like those who bash the stock on this board) are willing to put this amount of money into Echo Automotive. Perhaps they know a little more about where this company is going than the rest of us.

I take this as good news.