I agree totally with principle. The downside of reducing book value is far outweighed by the positives, paying dividend on common stock, paying off preferred stock and increasing liquidity. This should allow the management team to concentrate on banking.
By selling more shares at under book value it will be dilutive to current shareholders. However, if the can pay off preferred stock and reinstate a dividend it will be worth it. The S-1 filed said up to $23M worth of stock, they only owe $12M on preferred stock. If they sell more than $12M I sure hope they have a good use for additional capital!!! They are trading at pretty low multiples 80% book and 7 times earnings. I think there is a lot of upside here. Maybe additional shares will create more liquidity also. Let's hope so!