Ann: AJ Lucas Announces Equity Raising, page-8

At least this equity raise gives us a read on Kerogen's thoughts regarding approval. If Kerogen thought there was very little chance of approval, they certainly wouldn't be swapping debt for equity at this point. On the other hand, if Kerogen thought approval was likely, they would be in a rush to swap into equity at these prices before the approval was granted. No one likes being diluted but let's face it, all shareholders have benefited from Kerogen's repeated capital injections at higher prices. They are taking advantage of the situation to lower their cost basis a bit. It isn't great, but we could do a lot worse if we didn't have the backing of a large financial sponsor.