``This additional backing shows our ongoing belief in Breakaway Solutions and its FSP business model.''
Yep, $5M at 12% fully secured by substantially all of BWAY's assets AND warrants for 9,737,447 shares at 11/16. What a deal! Since I believe in the "FSP" model too maybe Brooks will cut me a similar deal? Oh, that's right, all of BWAY's assets are spoken for.
9.7M shares is dang close to the float. Sheesh! And they called attention to this with a PR??
Now we know why the suck back. All pain will pass eventually. Makes me feel better about that little $0.67 transaction , Do you think they'll retro apply some warrants to my deal, or am I expecting too much?????
I can't believe this is the entire deal it sounds so ridiculous.
You don't suppose that ICGE has exercised the warrants already for the grand "funding" announcement? About 17M shares have traded hands in the six trading days before today. Nah, probably not.... I assume that would be illegal.
the Company has obtained secured financing from Internet Capital Group
Most readers would assume that this refers to an amount of some significance in relation to the company's ongoing needs. However, as you said, this does not appear to be the entire deal and is more like a bridge loan. If they gave up an arm and a leg (potential 20% dilution) for a bridge loan, one shudders to think what real financing will cost.
yOU MAY RECALL THAT IN ONE OF MY EARLY POSTS HERE i COMMENTED THAT THE ABSENCE OF DETAIL in the announcement may well be significant in determining the future popularity of the deal. Sometimes what they don't say is more important than what they do say.
Only time will clarify the"whole deal", but it's conspicuous that ICGE themselves are not in a flush situation as far as cash is concerned and they may very well have to go through the funding ,mill before subscribing the warrants.
The new motto for the Nas may yet turn out to be...."Life is tough, and then you die"
You're right, Trev. We now know why there was an absence of detail. I should go through BWAY's previous filings and see what kind of credit facilities they had. It's hard to believe that they had to go with such expensive money.
This sort of looks like ICGE is trying to own BWAY in a sort of backstreet kind of way (bypassing the shareholders). JF