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Guided Therapeutics, Inc Message Board

  • billa_from_sf billa_from_sf Sep 9, 2013 1:58 PM Flag

    Absolutely no to a PIPE.

    No one is talking about doing a raise in the near term, but if a raise becomes necessary at some point, PLEASE consider any reasonable alternative but do NOT even think about a PIPE.

    PIPE is the hot new rip-off private equity funds use to steal long-term share holders' equity. The deal is structured so that down a to a particular floor the fund makes more money the lower pps, and they manipulate the stock down so it hovers around that floor.

    PIPE's are designed to drain the value out of a stock into a fund's pockets. Think municipalities that got screwed by Goldman Sachs (not a PIPE but the same idea in that "impossible" downside is exactly the scenario you get.)

    It is the most predatory scam I've seen, and it is the scam of choice these days. I would rather give a sweeter than desired deal to a traditional investor who believes in the company than enter into a PIPE with a vulture whose only goal is to suck equity out of the company until it dies.

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    • You already had a PIPE Deal recently - when Faupel gave a sweetheart deal to his Board buddies & issued warrants at 0.69 (stock was in high 0.80 - 0.90) along with debt at 12+ % interest. The dilution caused the stock to tank into the 0.60, never recovered and now we are in the 0.50 because the idiot cannot put FDA application together.

    • Agreed. If Faupel tries to push a PIPE deal I have to think some of the larger shareholders would revolt. PIPEs are usually done by companies desperate for cash that have run out of other options and I don't think GTHP is in that league...yet.

      • 1 Reply to disconnected6060842
      • Faupel is not "pushing" anything. We are in fine shape anyway. What matters now are more distributors, more markets, and more sales.

        All this worry about FDA approval is quite beside the point, IMO. The company of course has to work on getting it, and it is an annoying drain to have to deal with it again and again.

        But FDA approval is simply not that big of a deal as far as the company moving forward is concerned. I frankly am glad to see effort continue to be focused off-shore and not having to deal with a capital raise and other headaches to do a launch in the USA. The USA will come. A year from now would be fine with me. Just continue to grow the numbers, and pps will follow.