Good post Dparge. It touches the tip of the iceburg.

Investors, smart ones, need some incentive to dive into troubled waters. And, of all the troubled waters out there, this one holds a whole lotta trouble. Lost the second Amex appeal, as buried in the Q report, so will remain a Pinky play for quite some time. Market Cap is nearly one-third of the refi/loan being asked for. No profit each quarter, going quite a long ways back. Big Guys pretty much all out with maybe one left, and that one might not even really be considered a Big Guy as they only push $120 Million'ish and have a mere six holdings (Tradewinds pushes $21 Billion'ish with 129 plays). And then there is Hugo. And that's just the short list. Pretty tough sell.

Big money Spec Investors, despite the "Spec" term, want some reasonable guarantee. And, if they commit funds, they typically want, at minimum, a 10 bagger - but prefer a 20 bagger. Especially if they have to wait a couple of years, as time IS money.

So, we go with dilution. If there is dilution, it may be much more considerable than the scenario painted. Much more. There is a reason sp has been propped, despite Market undulations, and that is to maintain the ability to make a deal. I would imagine it would not just be simple stock issuance. There would be stock plus convertible notes issued, likely consisting of possibly a dime a share (but more likely somewhat less), plus an option to convert one share, but more likely two or more, at a penny or two or three, maybe four cents. This way, when sp tanks on the dilution announcement, the investor's stake is somewhat safe and they can recoup their "investment" at shareholders expense by selling at outlandishly low prices if they choose to do so. This seems to be the way things work in the Pinky world.

Not being negative or bearish. Just sharing what I have seen happen with other stocks. But, this stock is different? No stock is immune in this Market.

GLTA