Number of shares outstanding have increased by 25% from 37.4M to 49.5M. Share price was $1.80 prior to the announcement of the private placement. Mathematically, the diluted share price is $1.36 but psychology always plays a part.

The $12M does not appear to be a loan that needs to be paid back rather it is an investment. Investor evaluated the potential of the company and decided that it would be an excellent opportunity to invest a large chunk of money. If the SOPW business does not grow and turns bad pushing and holding the share price very low, the investor will loose large amount of money.

The investors bought ~12M shares at $1.00 per share. When the investors invest in a penny stock, they wouldn't take a risk unless the self-assured potential return is very very large. Investors with inside informations appraently expect the stock price to go way up, even with the potential initial dilution accounted for.

I presume that the sales agreement with German developer and, if this is not enough, other future projects that SOPW has in it's pipeline were presented to and reviewed thoroughly by the investor before investment decision was made.

The $12M no doubt improves cash flow greatly providing the company with plenty of ammunitions to agressively pursue business projects in the pipeline to increase revenue and hopefully earnings as well.

The combined German sales agreement (module + racking systems) appears to be huge eventhough it does not include construction/installation. This deal alone plus the fact that SOPW created a strong foothold in European market should be more than enough to compensate the dilution.

I expect to see more announcements in the near future of large scale business deals that were most likely presented to the investor outside of the 8-K.

The 8-K indicates that the purchasers are accredited investors not a nominee nor an agent "not with a view to the resale or distribution". I like to believe that this is a good deal for SOPW and dilution is an over reaction.

Any comment?