Yes, agree....not a good deal for shareholders at all.
Its like each one of us, providing a facility (for 2 years) to the company to borrow $1M from each of us, and in return, we get 4M shares each.
If the company borrows the $1M from each of us, we get paid interest and fees, and still retain those 4M shares.
If not, we get to keep those 4M shares or sell it back to the company.
What a great deal for Acuity Capital.
Not for existing shareholders.
The lingering question is why?
If the company is making profits now and being cashflow positive, it certainly can borrow money from traditional banks, so why take this path?
The market today didn't like this strategy.
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