This ain't much better than ATM, when you consider the free...

This ain't much better than ATM, when you consider the free options.
The problem with providing free options is some people will sell the heads and keep the free options for exposure to the long-term upside (and that's ignoring the additional dilution).
Another problem is they are only raising $10 million, so they'll be back to square one in a couple of months, and those sitting on the sidelines waiting for a credible funding package to complete stage 1 won't be willing to start buying for a long-term hold.
These guys really are muppets.