On February 18, 2013, we entered into a securities purchase agreement with an existing institutional investor for the purchase and sale of 761,429 shares of our Series A Non-Voting Convertible preferred stock and a warrant to purchase up to 400,000 shares of common stock, for gross proceeds of $533,000. The Series A shares and the warrant were sold together at a price of $0.70 per share for each share of Series A stock.
Dilution isn't typically good news but for this company I think it is good.
still digesting the 8k but I think this is extremely bullish:
In a separate transaction, on February 18, 2013, we agreed with the same institutional investor to purchase from the investor warrants to purchase an aggregate of 220,000 shares of our common stock at a purchase price of $0.15 per warrant. The warrants were issued in our initial public offering and have an exercise price of $3.4375. The warrant repurchase and the sale of the Series A shares and warrant are not contingent on the other although we expect the closing of each transaction to occur on the same day, but in separate transactions.
In other words, someone was willing to pay $0.15/warrant and the strike price is $3.43.