i definitely think the company should issue a complete explanation and apology for that awful PO, and, of course, the apology should be accurate, so management should indicate that they were a bit naive and were perhaps "taken in" a bit by the sharp investment bankers of the Venture.  Perhaps also throw in that they ended up in a situation where they so badly needed cash, that they just had to do it.  But once they realized they were in too deep, they hired a CFO who could count cash on hand and had dealt with those Venture Venom on numerous occasions.  

That way, like just about every other time news is released, the stock will take a dive!!

Get over it!