The company answered the Cowen lawsuit today. Looks like there will be a fight!
It seems that management says that they deny that they haven't paid Cowen (16 and 20), but later admit that they have failed to pay (25 and 28). We seem to admit that we owe the money (27). This is wild.

Here is a link to the cowen lawsuit documents:
http://iapps.courts.state.ny.us/iscroll/...
Type the code in the box on the right, and enter photomedex under defendant search and hit search
Click on the index number on the right, the complaint and the answer are there in PDF.

I wonder if Cowen was the placement agent for the PIPE! Imagine if Cowen did the deal and got us the cash, and we stiff them again!

This may just be setting up for chapter 11.
If the sales last week were naked shorts, over a million shares of the placement have already been sold for a profit. We need much more, it's only $650k to the company. The placement agent (Cowen?) must be doing a fantastic job to sell more of this stock wih all of our problems. Who needs ODonnell?
We've been targeted by naked shorts before:

http://findarticles.com/p/articles/mi_hb...
http://www.stockwatch.com/newsit/newsit_...*SEC-1633463&symbol=*SEC&news_region=C

Thought about the loan idea, but a shareholder vote would reveal too much, and I'm not sure management wants us to know just how bad things are. If the PIPE can be subscribed, a third of the company is in at $.65, so a vote might not hurt McGrath, plus we'll have a little cash in the bank to report.
There must not be any enforceable anti-dilution clause in the Perseus agreement because this PIPE would certainly seem to trigger it. Perseus' only way out IMO may be BK to sell Procyte and PTL. Management may have moved these companies to PA to make it less appealing to sell as stand alone businesses, although a big problem is that sales are down and expenses are up. They just aren't worth much today.
Exciting times at PHMD!