You know, as I think this through even further, I wonder how much incentive ASC Recap and Redwood have to force the OS up to the AS of 1 Billion shares. Certainly they could if StreamTrack fails to make their agreed payments, and they continue to convert shares. But, at the current PPS, we would quickly blow through the existing AS without paying off the total debt... and I didn't see anything in those agreements that would suggest StreamTrack would be forced to execute a reverse spilt and authorize new shares if that happened.
So, if StreamTrack wanted to play hardball, and they were approaching the point of having enough revenues to run their operations, they could in theory thumb there noses at ASC Recap and Redwood and claim they were out of shares to give... and force the matter to court to seek a new agreement.
Just thinking out load here... Does anyone know if there is anything in Securities law that would force StreamTrack to Reverse Split to continue fulfilling their existing credit debenture obligations?
Of course, this all hinges on StreamTrack's ability to have reached a point where they can pay their operating expenses as they go.
