Do you believe PIPE Financing is illegal?  If so why are there PIPE Financers out there.. ?   Why haven't they all been busted and thrown in jail?  Is it a questionable way of making a living.. possibly, but I do not believe it is illegal.   Post 9-11, PTSC would have been TU without some kind of financing..  Swartz stepped up and kept our lights on and everyone's investment here viable.  Were too many warrants/shares granted.. maybe, but is that illegal?  How would you suggest that PTSC  have gotten rid of all those warrants/shares?  Should they have repurchased shares before issuing divys.. perhaps.. that may have been a poor decision wrt common shareholders, but it wasn't illegal..  There very may well have been some poor decisions or 'footsie under the table' but I would guess nothing that is down right jailable or provable in the eyes of the SEC.. 

PTSC had debentures & warrants to rid themselves of (as well as a PIPE Financer) if they wanted to clean up their books they had to do something.. Gloria is  still there, so they haven't needed a scapegoat for anything...  Is PIPE Finacing 'unethical'?  PTSC needed a sugar daddy to remain operarting.. and the sugar daddy is reaping (yes with an 'e') their rewards.  I don't like it at all.. but I accept it for what it is.. and realize that soon sugar will be history.. then PTSC, all gussied up, can begin wooing legit investors/institutions.. ect..

IMO PTSC & Swartz have taken extra caution to make sure all is legit, as far as their financing and how they disposed of the debentures and warrants and subsequent shares.

jmio