Well, we see now why the desparate scramble for cash from private investors lately as the GEM deal was not working out well. I guess they found that they couldn't sell enough of their shares without pushing the price down to ridiculous levels.
This new agreement with Duchess seems to be a lot better than the GEM one in that it is not tied to an agreement to lend the shares for market sale, plus is up to $25mil and allows the company to set a base price to exclude low price sales in the VWAP period which is only 5 days. I am encouraged by this and I think (hope) it may turn out to be a turning point in the fortunes of the company.
It'll be interesting to see how buyers and sellers view this over the next week or two.
Hopefully, it will no longer be necessary for further private placements on such terms as the last few.
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