one million at $1.50 ....uh isn't that more that the price now????? the investment of $1.12 in another one million, is exactly that...they will hold until they are due to expire or excercise the warrants when they decide. In the mean time the warrants at $1.50 are actually supporting the stock price.... We got our cake and get to eat it to..... STRONG BUY,
Just to clarify: The Edgar filing is not talking about warrants but the exercise of warrants that Tailwind already has. Tailwind has warrants for 2 million shares and exercised(bought) 1 million shares worth at $1.50. They are now being enticed to buy the other 1 million shares at $1.125. This gives Fonar $2,625,000 in cash. Probably the most negative part of the whole deal is Tailwind is going to get another 2 million warrants issued to them as part of the enticement. All this to say that there are another 2 million shares on the books. We are at an important juncture. 28 machines sold and the need for capital to build them, until the money starts to flow. Pretty tough for a company to raise money from conventional sources when they haven't shown a profit in many years. Although I don't much like slicing the pie into more pieces, I would much rather have a smaller slice of a very big pie than a big slice of a very small pie. In the end the only thing that will matter is how much can I sell my slice of pie for. I still believe that in the not to distant future it will be much more than I can sell it for now.