As are most here, I'm trying to wrap my head around the rationale of this move. In particular, why the public offering if you're going to run the share price down so much? Presumably they could have made a public offering at a "reasonable" price and if it wasn't filled, so be it.

If I desperately needed to sell my house quickly and houses like it are selling for $500000, I might be really motivated and try to list it for $350000-$400000, but how desperate would I have to be to list it for $150000-$250000? I know it's apples and oranges, but it seems the whole point of a public offering vs a private placement is the ability to advertise the offering widely. Why go that route if you're not going to disclose the price in advance or do any public advertising on the offering?

I'd understand if they'd approached brokers/investors for a private placement and were told "we're not going pay over 0.36 for it, take it or leave it". But short of collusion on the deal (wink, wink), why open the bidding at the lowest possible point? Was the public offering targeted at 1 or 2 big investors and made public so that the little guys, could, in theory buy in? Was it meant to be a peace offering in light of how badly we're being screwed?

If the more market savvy people on the board have opinions on the technicalities of how these things are organized, I'd love to see the logic behind it if possible.