The worst possible thing to happen now is permitting all the hidden naked shorts to be able to cover via a secondary offering.
Jim Sinclair said it well this morning with the following:
Note to junior exploration, development and producers:
Unless the person or company is well known to you, already a large "registered" stockholder or a proven long, do not take private placements. The shorts are looking to cover.
Things may well be turning. Deal with well known friends only, not strangers and most certainly none of the bad guys.
When the HUI turns, the cover is on.