If the cash safety margin is too low surely there are other options than giving away equity. If you were confident in your company you would create some convertible notes (possibly to an existing sh) giving a reasonable return, converting to equity at a premium and importantly not giving away equity which is normally the most expensive way to raise equity. Even short term junk bonds would be better.
My take is that sure they can do with an additional wriggle room. However it is also another opportunity to get some bigger players onto the register who can ride the upturn and not be so beholden to the stock's terrible history.
DCN Price at posting:
20.5¢ Sentiment: Hold Disclosure: Not Held
