Biokey International Inc (BKYI)

[johnboy911]

jonQ, hate to burst your bubble but
to take advantage of BKYI’s accumulated tax loss, someone would have to acquire the whole company and continue it as an entity. If BKYI is liquidated in bankruptcy and assets sold separately, the tax loss would have no value. I think you are overestimating the value of BKYI’s IP. No one knows the value of BKYI in bankruptcy better than the insiders. If it were close to the .50 you fantasize, they would be investing their life savings. As it is, not a single insider is willing to invest a single cent.

You also need to reread the MOU. WWTT is not purchasing stock at .30. They are purchasing up to $15M in new convertible preferred stock, convertible at .30. HUGE difference! They will get a fixed 6% dividend payable quarterly. If WWTT does not convert to .30 stock by the mandatory redemption date, the full principle amount will be due to WWTT in cash. Convertible preferred stock is as much a loan as it is an equity. It is interesting that WWTT is getting voting rights with their preferred stock, very unusual. Have to wonder about WWTT’s intentions. Also, as a preferred stock holder, WWTT would be first in line to any assets in a bankruptcy. Common stockholders have become second class citizens.

As long as there are 10s of millions shares of .30 stock overhanging in warrants and convertible stock, .30 will be a pps ceiling, not a bottom.