If you add 10% to the common, in theory the value
Post# of 2146
If you add 10% to the common, in theory the value of the stock would be worth 10% less. Now buying 50m shares at .10 means that the company believes their investment of 50m at .10 is worth a lot more then .10. How else would you be able to sell 50m shares on the market unless it were.
Its why the stock went to .12. The only thing holding this company back ultimately is cash. Thats a real investment/company point of view. Bashers yell about dilution because they try to trigger a visceral effect.
If Socius is willing to take up to 50m shares at .10, ask yourself what the value of the stock really is....
Personally I think Socius is only done if necessary because the Novel deal will take a while or to provide leverage on the same or another deal.
I have no issues with the Socius deal because it takes away the real overhang on the company which is cash available for operations and R&D.
The stock should be in the 20s or a lot higher right now just based on the impending launches, revenue growth, Novel and ART.
Right now we are trading at about a PE of 10 which is low and that is without considering future growth, Novel, impending launches and Phendimetrazine,