EDIT: Post in reply to Rebel1 abovePaul says lots of things....

EDIT: Post in reply to Rebel1 above

Paul says lots of things. It's essentially his job to be optimistic. If GEM were serious about being a long term holder, it would've negotiated a deal in which it traded off (1) a much longer mandated holding period for any newly issued equity (i.e. period of time that must elapse before it flips the equity back to the market) in exchange for (2) a much steeper discount on newly issued equity. Also, they'd be buying on market, right now. Also, you're delusional if you think a PE venture would set up a $55m equity facility for a sub-$20m company with the intent of holding on to all of the equity acquired through the facility. Again, if that were the case (i.e., if that were gem's intensions) it'd be buying on the market now.

As I said previously, I think this facility is a good arrangement. But as I and several others have said, GEM's interest in this deal is the ability to provide WFL with quick cash in exchange for a disco'd equity stake which it will flip back to the market ASAP. Do you really think we paid $550,000 to GEM because GEM wants to buy us? Give me a break.