I work at a lot of start-ups, and an analogy that is similar is that it is always better to secure a round of funding than get a loan. If you need the money to expand or to simply move things forward, you are much better off as a company that way. An investment, although it might weaken in terms of percentage of the company, will be worth more in the long run if money issues are dealt with properly. It is just business... if money is needed, this is the best way to get it and you can't bury your head in the sand and pretend the money's not required if in fact, it is. Sounds to me that BLTI's demand is far outstripping supply, and to meet demand the cash IS in fact needed. JMHO.