Ann: Funding Facility Update , page-3

Modena did a split and the stock price went down from 0.08 on May 26, 2010 to 0.03 on June 27, 2011. The filings done by AGS show they did not sell any stock during this period.
The AGS funding is a perfectly legitimate financing called an Equity Line of Credit which numerous funds do including Springtree and Truestone. Anthony Hamilton entered into the same type of Equity Line of Credit Structure for Modena with Truestone and you will notice that the value of the stock dipped after. Since Anthony Hamilton signed the same type of equity line financing with Truestone, he knew exactly what he was doing with the second equity line financing. It?s never a good idea to sign two equity line of credit financings as that can create too much downward pressure with both funds competing against each other to sell stock into the market which everyone knows that is how equity lines of credits work. These equity line structures as with any equity structures with warrants, options or free stock create overhang and dilution. When the market sees these freely trading shares at zero cost basis they usually sell in fear that the stock will be sold since these type of financings cause dilution with the funds selling stock into the market.
If you look at Section 3.8 of the AGS Agreement, ?Trading Activities?, the trading of all shares including the free commitment shares received by AGS was expressly allowed in the Agreement, thus, it appears that all the selling was done in accordance with the agreement and the law. Section 3.8 states that ?The Company acknowledges, without exception, that the Investor has the right to sell Common Stock at any and all times during the Commitment Period.? If Modena wanted to prevent this selling, they would not have allowed this clause.