So anyone who has read the prospectus find any of this toxicity's clauses contained within it? "While this deal may have appeared benign, there was a toxic feature in the warrants' fine print. According to the warrant agreement, in section 5, if any of the warrants are out-of-the-money, meaning CTIC's market price is below the exercise price of the warrant, Socius Capital can exchange the warrants for shares of common stock or cash, equal to the "Black-Scholes Exchange Value" of the warrant. The formula for the "Black-Scholes Exchange Value" was made up for this deal, and rigged to make sure that the warrants are always worth a lot of money. Theformula, buried in section 17(b), uses an expected volatility of 135%, more than double any reasonable estimate at the time as illustrated below, and a time value of five years, regardless of the actual time to expiration"