Turbine Aviation Inc (TURA)

[eMailEdL]

Hi So Gal, Yes you're right. I took another look and this is a debt offering. Not equity. So here's the thing. Debt is generally easier to raise than equity because the debt holder's capital is secured by the shares. If at least the interest payments are not met, the debt is immediately converted to equity and they are sold in the market to repay the unpaid debt.

You want to talk dilution? Now I have not seen the terms but generally on these stocks they are floorless. Meaning that there is no limit to the conversion price. As the debt is being sold and the stock price is dropping, there is no limit to how low the stock can go in order to repay the debt.

Again, without reading any details, But... This is what's called a "Death Spiral".

The next few days will be interesting because the company generally takes 30 days to do a name change. If GLGT actually merged with turbine aviation holdings, they inherit their debt and than watch out. But to date we have not seen any merger docs or even a name change which should have happened by now. So... any guess would be pure speculation as far as I'm concerned.