They spent $2 M of their capital reserves on a buy back program that accomplished nothing. Now go to the market to raise 6 Million. It is a mistake made by many small enterprises. Short sightedness when there is a few extra dollars in the bank and they think it will be a bed of roses forever. I stated at the time and Davepro agreed it would have been better put into assets. Otherwise than doing that there is nothing wrong with having a bit of reserve capital in the bank.
However it seems the urge to spend money is irresistible. 12 million shares amounts to dilution of 22% and there is another 12 M warrants attached. In total it comes to over 40% of the share float. The statement that insiders will participate I suggest is an attempt to build confidence in the minds of some gullibile shareholders. They can buy 500 shares which amounts to nothing and they have participated. The only positive thing is it is higher than the PP and Warrants are priced higher than the current price. There is no doubt in my mind the PP will be picked up but it is a shame it never took place when the S/P was higher.