Protagenic Therapeutics Inc. (PTIX)

[eddy2]

Now you may want to believe the internet on there take of a Bearer Bond " often noted as a baby bond and I will give my explanation here in the following and sometimes revered to as Bearer shares in the early days but seldom used today.


What they are is the reverse of a bond much like a reverse loan on a house were the bank has tittle to your paid of home and pays you principal and interest on the asset while charging you the use of it as they pay off the principal to you.


They first gain by contract the title to your home that can be used as collateral for other debt. They have a delayed income in place that is built in but we don't want to dwell on that as we want to take a look at how bearer bonds work and how they represent on a financial statement a Bearer market to the untrained eye.



The bearer bond debt is issued to the present shareholders for there shares or equity position. The company authorizes billions of shares at par value $.0002 a share to be sold.



They issue them at a price of $7 dollars on the IPO buyers come in and purchase the shares for the Bearer bond that has revenue as well earnings that goes toward the paying of the bond that is like a reverse lease if you like of the company back to the original shareholders in the way of equity diluting the new shareholders but again it is much like issuing a dividend to those original shareholders. So do the new shareholders loose not really if they don't sell. What happens to the company well it is now owned by the old and new shareholders.



If you did sell early as a new shareholder wouldn't you want to buy back in to day at fire sale prices that we see under shareholders equity of the old and new shareholders.