SunWorks Inc (SUNWQ)

[Intotheblack]

The notes are how SLTD bought SUN. It's debt(money borrowed) in return for equity (shares of the company). The money was borrowed from accredited investors, who after 6-12 months on certain set dates(all outlined in the 10-K) get shares in return for their lending the money.

They are lenders, like banks, that make money off lending money and they don't want the company stock, they want the money so they just sell the notes once converted. This is why we see large blocks hit the bid. We saw the same thing back in Q1. It's nothing to worry about. There is nothing "sneaky" going on. It's just the way start-ups get money when they are non revenue generating. Now that we generate revenue, we won't need to use this method anymore. This is why we see blocks sell at bid when we all think "who's crazy enough to do that"... it's just lenders who don't care about the company, have made their money and are off to the next loan.

Consensus is that the notes all should be converted prior to Nov, 1 (just 4 days from now) . So we are just about done and then there's going to be much less debt on the books which investors should like to see.

Anyone care to correct or add, please do.