Any selling or shorting by "investors" is totally separate from the financing itself. And again, check the analysis- it shows that dilution due to financing will be minimal- at most 2M shares a month, 48M over the 2 year span of the financing. That's an absolute maximum of less than 15% dilution- and it's likely to be a lot less since any number of factors will reduce it- especially if revenues ramp up and draws on the LOC are no longer required. Downward pressure on the stock due to 15% dilution? If you haven't noticed, SFMI's sp often varies by more than 15% in the course of a trading day.

Read that part of the disclaimer again: "Moreover, the perceived risk of dilution and the resulting downward pressure on our stock price could encourage investors to engage in short sales of our common stock." It's perceived, not actual risk of significant dilution, because there is no risk of significant dilution due to the financing. But that irrational, ill-informed, poorly thought out, and completely wrong perception is fed by posters like you. Any shorting based on such a perception is not likely to turn out well. And I assume that you are aware of the fact that most brokers don't allow common investors to short sub $1 stocks- and those that do tend to require huge margin to do so- such as $2.50 a share. Do you really think that any "investor" is going to use his margin that way- tying up say $25,000 in order to short 10,000 shares of stock worth $800 that he could make at most $800 on if SFMI went to 0?

And BTW, using standard disclaimers like that for fearmongering is exactly the reason you're not regarded very highly on this board. Stuff like that is more appropriate for iflub. That's where posters spread fear due to "perceived" (rather than actual) risk. And the reason that disclaimers like that are necessary in the first place is that too many people operate out of fear or "perception" rather than actually reading and analyzing the financing agreement.

Once again- Give it up.