Everybody slow down.......this selling is from the folks in the last offering selling their shares and keeping the warrants as a "free" bet. Today is the first day they can trade. Expect significant pressure for few days while this overhang gets wasjed out.
I usually think of bag holders as those who buy at the top and are stuck. I think there are those of us who feel pretty good about this even with the recent volatility. Say...up over %70. I think the volatility is fun to watch. Maybe I'll nibble a little more if we get down below 2 again...
At the Closing, the Company will sell to the Investors an aggregate of 5,219,768 Shares and Investor Warrants to purchase up to 2,609,883 shares of Common Stock (the "Warrant Shares") for aggregate gross proceeds as of the Closing of $8,090,644. Each Investor Warrant, exercisable for five years from the Closing, has an exercise price of $2.25 per share, subject to adjustment as provided therein. The Shares, the Investor Warrants and the Warrant Shares are sometimes referred to herein individually and collectively as the "Securities." As a result of the Financing Transaction, the Company at the Closing will be obligated to issue to the Placement Agents warrants to purchase up to 208,790 shares of Common Stock (the "Placement Agent Warrants") on the same terms and conditions as the Investor Warrants and to pay a commission of $566,345 to the Placement Agents as well as certain of their expenses.
Pursuant to the Registration Rights Agreement, the Company will be required to prepare and file a registration statement (the "Registration Statement") with the SEC under the Securities Act covering the resale of the Shares and Warrant Shares to be issued to the Investors as well as the Common Stock underlying the Placement Agent Warrants, by no later than April 5, 2011 (the "Filing Deadline").
5,219,768 + 2,609,898 + 208,790 = 8,038,456 shares registered on April 5, 2011, effective as of April 26, 2011