great question OP.
on the topic of convertible debentures vs bank loans. The KEY advantage (the only advantage, IMO) in doing a convertible Note vs a Bank Loan is from a cash Flow perspective. From the issuer standpoint, the Convertible notes most often will carry less committment of Cash Flow to be paid for Interest payments. The Disadvantage, of course, is that the equity value of the issuers stock will decline as more dilutive shares are converted.
So from FEEL's perspective, in this trying economic climate, CASH IS KING. You must have cash flow in order to protect the business's ability to operate fluidly. Even though the shares will be diluted as they are converted, FEEL mgmt probably sees this dilution and declination of PPS as a temporary, short-term problem, and keeping better cash flow is more important right now to ensure the long term viability of the company.
This is just the short-term bump in the road that we, as shareholders, will have to deal with until we can start seeing more cash flow from operations (net Income). I'm hopeful the marketing campaign will reap those higher Income returns in the short term and long term.
That being said, I would love to see some of the commercials or at least some communication from the company about how those commercials are going, and if we are seeing any spike in revenues from them.
River~
