Hercules knows OCZ has top notch Enterprise and Consumer Products and are willing to give OCZ what they want. The dollars are very small and the stock dilusion is nil. That's what I like to read!
Have to hand it to Hercules.
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.
Not much left for bag holders.
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?