Did he just say 50 mill in series C at 10%? Perpetual preferreds? That is 5 mill a year in payments for tot yearly sales of 40mill! Being valued at 2+ times yearly sales this is NOT cheap. Bad capital structure hidden under rosy story. Watch when he says EV at 100 mill. The savvy observer will know half of that is the series C. Common shares took a huge hit with this financing and he thinks he is shareholder friendly!!
FTK used to be another 40 mill mkt cap company now 1b+ and never issued this type of preferreds. More wisely, they issued units with interest, convertible at a slightly higher price than the stock price at issuance. Converting to common and bringing everyone on the equity bandwagon was what gave them credibility. The CEO here made a bad deal for commoners not believing in equity himself. Responsible dilution is not an issue when the company grows fast.