IMO this is the best outcome for MELA. They are getting a loan for aprox. 25%+ of market cap. Conditioned on closing ATM, the same as if one was applying for a mortgage refi,all home equity etc would be closed as a condtion of loan. The 10%+ interest is customary for a company in MELA present state, the interest only for the first year shows faith in the proforma submitted, albiet the interest should have been between 8-10%, but you know my position on present management. And yes we all would like to have the ATM done months ago at a higher PPS.
I will be averaging down in the $1.4-$1.5 ps today to get below $2 PS. The short position no longer is a concern for me in the near term and if its not reduced significantly in the next 30 days it could actually become a benefit in the coming quarters when MELA meets or exceeds milestones that the current VC has established as a condition for loan. I DO NOT believe MELA would have recieved a loan if the numbers didn't show a better than average chance for success.
Present management has bought themselves 12-24 months to execute their proforma and the new VC seems OK with the numbers that were just shown to them. The risk/reward for a 50-100% return in the 12-24 month time frame seems acceptable to me at this time. Realizing this is still a highly speculative play, certainly no PM, LINE, ETC ETC................................
As the Rothchilds said 'buy when the blood is running in the streets" for the biggest gains.