I think #3 is not likely, mostly because it would

I think #3 is not likely, mostly because it would be a tough sell to investors to ask them for funds knowing they are going directly to a lawsuit settlement. I doubt they would sell it that way but investors are not dumb. On the other hand, shares are shares, investors may not care what the funds are going towards. Historically, these rounds have been in the 2-5 million range and I think mgmt feels it is an easier sell to put out small dilution doses. If they put out a 15 million request, that would be bad.