My question is, How did these note holders know there was going to be another cash raise? I get that it is sort of obvious, but they really don't know unless they have been approached by someone that laid out the plan prior to yesterday's CC. The selling by them, keeping the SP low has been obvious and the only reason for it is to load up again through another raise, which we retail investors knew nothing about until yesterday. If Nader really meant he was screening for who gets to invest for this "final" round, then why would the individuals that sell positions to control the SP be getting the benefit? What about the most loyal investors that bought the risk that warrant and note holders seem eager to unload? The fact that the TO showed that there is a roughly 20% of warrant holders willing to convert and hold a position and 80% who would not really shows just how loyal the direct cash fund sources are.
I realize this is how the hotdog gets made and it can be ugly, but it really shows how open market investors are there to be taken advantage of. We are there to soak up the shares that warrant and note holder won't hold. They get the preferential treatment from the company even thought there risk aversion is only possible if the open market is kept eager enough to buy. The comment by Nader to "just hang in there for a few more months" is to keep the funding alive.
I really hope the message is sent after this last round that there are no more and the risk off plan by these warrant/convertible note flips to our advantage.