I just received my "Joint Prospectus/Proxy Statement" from RATL. With the issuance of 12+million shares of RATL at approximately $45, it's going to cost RATL about 1/2 billion dollars. Is it worth it for a startup that's losing money, and by my estimates, unless they can get more VC funding (which they stopped trying to get because of the pending merger [and good luck in the current Tech climate]) they should be out of cash in less than 2 years.
I have some of the same questions. Ratl put up the initial $50mil and we recd a 40% interest. Another $25mil came in from a VC. Cat still has $45mil cash so they haven't spent all of our initial $ yet. And now RATL is going to pony up 1/2 BILLION in our equity to our insiders and the VC when we have borne all the risk? Doesn't make sense to me.
I've been a holder in RATL since just prior to the Pure Atria merger so I've stuck thru quite a bit but not sure for how much longer.
IMO, you should research the companies you own so you know why you own them. Rational played the central role in starting Catapulse, and I was relieved when they announced they would buy out their original partners' ownership positions. Rational is far from cash-poor, and five years from now the Catapulse business will be a clear force within the software development industry.