Protagenic Therapeutics Inc. (PTIX)

[eddy2]

http://valuestockguide.com/all/stock-warrants/


Thinking outside the box. A company issues warrants,they don't sell and were never attended too sell. The company has to underwrite the warrants for there full value in doing so the bank wants collateral so all the assets goes into the banks name. Investors are bailing due too one the warrants and second the forward split of the shares putting pressure on the stock due too dilution.



The stock tumbles under the debt as well as the warrants granted never exercised. The cash is used to purchase new none performing assets that takes time to get them performing meanwhile the other performing assets now under a collateral agreement that the officers are responsible for paying the debt has decided to enrich them selves allowing the release of depreciated assets to be used too pay the debt.


Liability debt is the debt of borrowing assets to use as collateral and there is an obligation to return that asset to the company at a charge to the company of the officers who borrowed the collateral.


Now the officers can sell the assets once performing back to the company that they had used company assets as collateral but to be fair what they do is loan there now performing assets to the company as collateral so as the company can borrow capital on those borrowed assets as well as the ones returned all the while buying and selling the stock in the dips and rises over time.