"... There is no reason for Fred to award existing shareholders with cheaper shares and options. ..."
No? I think there is a reason. One could add to that sentence: "unless they are contributing a million dollars or so", and bearing in mind that ordinary SH had seemingly not been party to the same level of
additional information, demonstrations, and likely to additional financial projections that these 'sophisticated investors' have received. The unsophisticated investors like most of us are, were not party to the demo of the GEN-I chip until some considerable time after the cash had been raised, and only then because it seems to have been leaked. This is a period during which many would have felt somewhat bewildered by what was being done by AKP on number of fronts. Were they not entitled to know what was happening? Isn't a share still a share of equal value with all others? Were they not entitled to be given the same info and same demo and asked and given opportunity to cough up for more shares on the same or similar terms? Personally I think that is or ought to be so.
I see no reason for the co not to issue shares at lower prices to existing holders on say, a 1 new cheap share for every 10 shares owned basis, or some similarly fair number. This is far from unusual and is generally a sign of acknowledgement, respect and gratitude for the trust that SH have placed in the company by buying and holding its stock through some tough times. It is typically done along with a capital raise. I have participated in several such. I think Fred would be and ought to be grateful enough for the trust LTSH have placed in his failed promises and projections over so many years now. Had more cut and run earlier the co would have had to raise more capital before now I suspect.
I guess that makes me somewhat old fashioned in my outlook, but I am sticking with it.
(20min delay)