Ann: Entitlement Offer - Eligible Shareholder Letter, page-9

Hi BWinter

I understand your point re the retail holders doing the heavy lifting however I think this one can be read both ways - the offer is only 1 for 13 so retail shareholders are not being offered large amounts of stock. Also, the offer is fully underwritten, in part by Zeta, the major shareholder. Had PAN done a placement to only institutions and sophisticated investors at $0.38 (a discount to last price $0.46), the howls would have been heard from retail holders complaining that they had been neglected again. Management can't win!