For the $10M they loaned they are getting 17.5% interest risk free (e.g. assuming OCZ has $10M in assets for security).
They got a $200K amendment fee, diluted the stock price further with the adjustment of the prior March warrant and received a June warrant that dilutes the stock by over 50,000 shares/day and you have to love the provision that these will likely be adjusted further and wind up being preferred stock.
I will agree they are working with OCZ instead of bankrupting them, but they are doing a mighty fine job of collecting hefty fees. I'm surprised they are accepting additional warrants and am wondering if this is smoke in the mirror.
It is a possible a potential deal fell apart, or took longer than expected. Based on this writing their may be financing or a buyout as soon as friday. Either way, with this news and significant lack of updates this bull is turning into a bear. I still believe the company is undervalued respective to the industry, and they have made a lot of positive moves over the last many months.
Anyone else with a reasonable and rational comment?