SA article by Honey is out...... Don't agree but will have a...

SA article by Honey is out...... Don't agree but will have a better look over the weekend.

The first bit- read all of it over there
30, 2016 8:05 AM ET
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About: Sunshine Heart, Inc. (SSH)


Robert Honeywill
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Summary

“There are three types of people in this world: those who make things happen, those who watch things happen, and those who wonder what happened.”.
Strange things have been happening with Sunshine Heart daily share volume and price. Daily turnover on one day was in excess of total issued and outstanding Common Stock shares.
I had thought it might be another party buying up the Common Stock to frustrate Sabby, but Douglas House, SA News Editor, thinks it is “market forces” and “underwriter magic”.
Are the Sabby group “Wolves”, who could end up being Sunshine Heart’s ally in achieving its goals? That possibility matters for the voting at the upcoming shareholders’ meeting.
I review what has happened so far, and explain why I feel I have to vote YES to all four agenda items at the January 9, 2017 Special Meeting.
IN BRIEF
Sabby group acquired the equivalent of ~72% underlying equity in Sunshine Heart, through two Preferred stock offers in July and October 2016, without their identity being revealed, and without any takeover bid being made. Sunshine Heart has called a special meeting of shareholders for January 9, 2017 for the Common Stock shareholders to approve the issuance of the Common Stock underlying the Preferred Stock held by Sabby group. There is a lot at stake here for Sunshine Heart Common Stock shareholders. On the one hand, if they approve the issuance of the Common Stock shares underlying the Preferred Stock held by Sabby group, will the Sabby group then be in a position to exercise greater control? On the other hand, the funds raised in the two Preferred Stock offerings are only sufficient to last into February 2017, and Sunshine Heart is bound by agreement with Sabby group not to raise additional capital through a Common Stock offering until at least 30 days after Common Stock shareholders have approved the issuance of the Common Stock underlying the Preferred Stock. There is a constraint on Sabby group with a prohibition on their holding >4.99% of the issued and outstanding Common stock at any point in time (9.99% with 61 days notice). It would appear Common Stock shareholders have been put in a position of being forced to vote "YES" for the issuance of the Common Stock or see the company forced into bankruptcy. It is perhaps understandable that many existing Common Stock shareholders are quite furious at being put in this situation and are prepared to vote "NO" in an act of defiance. But there is another way of looking at this. Yes, Management should never have let the current situation arise. But, a "NO" vote would likely limit Sabby group's options to a further highly dilutive Preferred Stock offer, which would further reduce existing Common Stock equity share and value. A "YES" vote would likely open up many options for Sabby group to bring "market forces" and "underwriter magic" to bear to increase the price of Common Stock shares, and consequently the share price in a public offering, as early as February 2017. Sunshine Heart Management has been unable to raise the necessary capital to ensure the future of the company. With ~72% underlying equity, and an ability to convert to Common stock shares, it would seem to be in Sabby group's interests to see the company well funded with a progressively increasing share price, and Sabby group have certainly exhibited they have an ability to do this. The Proposal 3 to allow a reverse stock split is a "no-brainer" as far as I am concerned. As much as it irks me to be put in this situation, I find I must vote "YES" for all 4 proposals at the January 9, 2017 meeting.