Let's not be too hard on La Jolla. Without some sort of funding...

Let's not be too hard on La Jolla. Without some sort of funding arrangements BLT would be in administration right now. It has been the La Jolla funding that has kept the company afloat. It is true that the deal struck by BLT management with LJ does give LJ the opportunity to keep the SP between 3-4c and still make a handsome profit. Perhaps management could have negotiated a better deal but it is what it is.

If you remember existing shareholders were offered the chance to provide additional funds but most declined, leaving BLT management little choice but to find a vulture capitalist like LJ.

If another investor did come along, BLT management does have the opportunity to cease drawing down on LJ's money.