There is one thing I am most certain of. That being: If you get a convertible loan from Stephen Hicks (Tarpon), Corey Ribotsky (NIR) or Robert Presser (TCA Global), you stand a real chance of losing your company to them. It is like taking a loan from the Mafia, that soon becomes your controlling partner.
Now, the company may feel confident enough not to worry about dealing with TCA Global. It is evident that GEIG needs capital. But, look at it from the lender side, not just the GEIG side.
TCA Capital is in a no lose situation here. Read the loan agreement. It is so one sided, one must conclude that GEIG was desperate for capital. And if their technology and the promise of revenue in the short term was really a secure reality, they would not have to borrow money from the likes of TCA Capital. On the other hand, if they fail to meet their short term obligations to TCA Capital, they could lose it all to a financer that has the capital to ride out the lean times until revenue streams can be developed. As collateral for this line of credit, they put up the assets of the company. That is written into the loan agreement. Along with TCA Capital having all GEIG revenue go into a TCA Capital "Lock BOX". Again, I suggest you read the loan agreement thoroughly.
A good example of what could happen is the recent takeover of a company called Pure Safe Water Systems by Tarpon (Stephen Hicks).
I am not saying that Management of GEIG did not know what they were doing. I am saying they were willing to take the risk. Now that could be construed as positive (knowing they can abide by the credit terms), an act of desperation or over confidence or positive thinking. Only time will be the end judge of their decision.
And, I am not saying money can not be made trading this stock. I am just providing my observations and opinions. Everyone should know what they are investing in. No?
And just so we are clear here, I currently hold shares of GEIG. I have no intent to bring the SP down. Quite the contrary, I hope it goes up and down a number of times, because I am by no means a long term investor in this stock, unless future events prompt me to become one.
Those that enter with certainty, soon realize doubt; While those that enter with doubt, will discover certainty.
