The selling catalyst is now gone and all sophisticated players will be buyers below .40. The arbitrage play on the rights offering is over.
Those of you panicking over the 33mm registered shares don't get it. A registration doesn't mean they'll be for sale tomorrow or three years from now. Selling based on this filing isn't smart.
Even if the offering only gets 70% participation that's $2.6mm additional cash adding to the approximate $2mm totaling $4.6mm in cash. This is enough now that they've reached the break even revenue level. 100% participation gets them about $3.8mm additional capital.
Smart investors are buyers below .41 largely because there's no longer an incentive to sell. At .41 after the offering the market cap is $28.7mm. Below 1X 2011 sales. With minimum 30% growth this year and what should be 100%+ 1x sales is too cheap.