Re: Fusion deal-sge
posted on
Jan 09, 2007 05:26AM
The amount of dilution depends on the pps when the company decides to access the capital source, so there is no exact dilution number that can be attached at this time.
Quite frankly, I would rather have EDIG be profitable and growing their revenues at the expense of an increased outstanding share count instead of accumulating more debt. I see this as a more desirable method to raise capital, although, you do what you have to do.
If Blakeley achieves his objective of profitability based on eVU sales alone, and then patent infringement suits kick in, any dilution will prove to have been necessary and actually a good thing. Growth is good. Profitability is good.
It's time for EDIG to turn the corner. They apparently have the management in place that is focused on achieving that along with a product and IP protection efforts in place. Now the capital is in place.
Looking at the market's reaction to this preliminary news, I'd say there might just be some hope that EDIG moves to much higher ground.
Fusion Capital Fund II, LLC, a Chicago-based institutional investor, apparently things along similar lines.
Only time will tell but EDIG, without access to capital, will yield more of the same. They now have the ability to compete.