As Wotton noted:
The elements of the new arrangement with LPC include:
ACT controls the timing and amount of any sales of common stock to LPC at a known price;
LPC cannot require ACT to make sales, but is obligated to make purchases as ACT directs in accordance with the terms of the agreement;
There is no upper limit on the price per share that LPC could be obligated to pay for shares of common stock under the agreement; and
There are no limitations on use of proceeds, financial covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages.
Sentiment: Strong Buy