Did the dividends actually do that? Please explain how the dividends ended that cycle. They actually fed that cycle as the dividend announcement in large part sustained the market that allowed and incentivised Swartz to convert and sell at a relatively high price.
What makes it suspect and distasteful, IMO, is that it wasn't enough to convert at miniscule prices and sell into those market runs, and enjoy THAT profit (which I don't argue with as that's the nature of the financing that PTSC signed up for) but ON TOP OF THAT PROFIT, our Swartz aligned BOD decided dividends were due to those warrants that hadn't even been converted.
And what actually ENDED that cycle, was the more conventional RETIRING of the warrants through repurchase as announced in the 10-11-07 PR
http://patriotscientific.com/index.php?option=com_content&task=view&id=135&Itemid=29
If what you're saying is that Swartz wasn't going to be happy until he bled every possible cent he could out of his PTSC shares, then maybe true, but many companies have utilized similar financing, and many of them have extracted themselves from the situation without going to the lengths PTSC did in favor of Swartz. That Swartz's EMPLOYEE and representative still sits on PTSC's board after all this is why the continued cycle of criticism of this BOD is warranted. It also begs the question as to whether more conventional ways of dismissing Swartz's interests were ever presented and/or pursued.
