GNCC Capital Inc (GNCP)

[Darth Trader]

How did they secure this loan? They have nothing left to buy the shares back. They have no assets and no revenues. Use some logic in this thought. The AS and OS are equal, they would have to more than double the AS....secure the loan with convertible shares, then do the buy back. So let's play this out...

1. More than double the AS to say ....25 Bn. (Remember your current pps is based on 10 Bn)
2. Borrow $750 k at par with convertible shares
3. Buy back an equal number of shares which they can resell

So what's happened? Sum it up this way:

1. Dilution-your pps is now shared by 2.5, so for longs who have been accumulating kiss that thought goodby!
2. The money borrowed is convertible and once again company debt is now put on the backs of current and future shareholders-more dilution
3. Still no assets
4. Still no revenues
5. Now an even more negative NPV
6. And alas NO Value!

In any business setting, ANY money borrowed should be used to generate revenue! This adds value!

Again it's your money. GLWT