@kaleb,
I do not disagree w/you that once RapiMeds is up and running that SCRC will be more likely to be able to qualify for more shareholder-friendly traditional financing options in order to raise working capital.
However, the issue re: dilution that has been the topic of discussion here on this board has been in relation to the near-term, for which 4 primary sources have been identified as the cause:
(1)
Working capital necessary to even LAUNCH RapiMeds. Again, directly from the mouth of babes, SCRC itself very explicitly stated in its most recent Q that it lacks the funds necessary to launch RapiMeds.
In addition, the Q also stated that the CEO is incentived to raise $4M in capital if he wants to double his salary in 2014.
Until SCRC becomes an operating company with a minimum of one full quarter's worth of profitable and cash-flow positive financial results behind it (I say one quarter because that will be the minimum time period before the next Q comes out to substantiate these numbers), no bank will lend SCRC money. To qualify for traditional financing from a bank, SCRC will need to provide audited financials (i.e. the Q) to demonstrate that cash flow is sufficient to adequately service the debt each month. Until SCRC can demonstrate this ability in a Q, no bank will touch them.
So that leaves the vulture financiers (i.e. your neighborhood payday advance store), who will demand at minimum the standard 40% discount on shares.
Remember, no baby comes out a womb sprinting. A growing company is no different. It has to crawl before it can walk. And walk before it can run.
(2)
Unlocking of restricted shared handed out to the paid promoters who orchestrated the epic P&D from this past summer.
It is not a coincidence that as soon as the nearly 800,000 free shares of restricted stock paid out to JOSEPH ZAMPETTI and his 7 undisclosed "assistant promoters" unlocked on 12/6, the sp began cratering each day from the .195 levels now down to the sub-.14 levels. That's a loss of ~30% in less than a week.
Beginning next week on 12/20, another 435,000 shares unlock related to other named paid promoters per the Q.
And a couple weeks after that, in early/mid-JAN, 2,100,000 more shares related to a variety of paid promoters unlock and hit the float.
And then come FEB, another 1,200,000 more shares, again related to paid promoters, unlocks.
(3)
Unlocking of other restricted shares related to other non-consulting services to the tune of 2,200,000 additional shares during this same timeframe (i.e. between now and next FEB). The is also in the Q.
(4)
8,500,000 shares related to convertibles that continue to come due on a staggered basis from now until next FEB). And this is just for those new convertibles that were issued during Q3. The K will tell us the magnitude of any new convertibles issued during Q4.
**************
The dilutory affects of all these factors are unknown and cannot be measured at this time. Their influx into the float is a matter of when and not if. The only unknown variable at this time is when SCRC will issue a meaningful PR announcing that it has locked up distribution deals with significant partners in China. Or an 8K announcing an unexpectedly creative financing arrangement to launch RapiMeds that somehow does not involve dilution. As far as I am aware, those are the only two types of announcements that can help stave off the inevitable dilutory impact of these potentially tens upon tens of millions of shares of stock hitting the float in such a small window of time between now and next FEB.
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