Sure, at the moment, this HCM financing does look like quite a disastrous financing solution, considering that repaying the loan with shares would mean around a third of the company’s total shares. However, before heavily bashing management, it’s important to remember that the situation was completely different when these agreements were made. Back then, Faron’s market cap was in the 250–300 million range (now, accounting for cash, we are around 50 million), so repaying the loan with shares would have covered about 10% of the share base. Surely no one expected that the offering at the beginning of the year would lead to this situation, or that the share price wouldn’t recover from that shock. The financing solution is partly to blame, but that was never management’s intention, nor could this have been easily predicted. Being caught in a bind between the collapse of partnership negotiations and an urgent need for financing forced a critical “mistake” with the press releases, where both the amount to be raised and the number of shares to be printed were announced. → The market drew its own conclusions.
Now it would be important to rise from these murky waters (your fingers get pruned when you wade in too long) and start looking forward. It’s completely pointless to keep harping on the same old tune month after month. This is the financing solution we have on our hands right now, and we should figure out constructively where to go from here. If you can’t get over it, I recommend selling your shares. Complaining won’t solve this, and public mudslinging certainly doesn’t help Faron’s story.