CarbonMeta Technologies Inc (COWI)

[1manband]

Sorry, but toxic death spirals only occur in publicly traded companies. The lenders are able to convert the debt into common shares at a massive discount to the market price of the shares. In COWI's case, they can convert at an average of 50% of the stock price. They then dump the shares into the market immediately (actually, before the conversion) which means they make 100% of the conversion price immediately without risk.

And the constant conversions and selling just drives the price lower and lower, which causes the company to issue more and more shares for the same amount of debt. And that is why the stock price has lost 99.99% of its value since they first issued the toxic death spirals even after TWO 1-200 reverse splits.

And it is also why the Company not only isn't paying off the toxic death spiral debt, it is INCREASING. They can't even afford to pay the huge interest payments!