"Mike and Comella are both still young and so why would they risk their careers with something that might not work out?"???
READ the latest compensation table, latest 10-Q filing. They just helped vote themselves (they make up 2/6th's (1/3) of the BOD, a huge series of percentage gains on a couple of base salary increases in the past 2 yrs and now a $500K CASH bonus for the one and a $300K CASH bonus for the other and boat loads of options. They're not hurting for anything. Why would one not stay when you're pulling down over $1 MILLION in total comp package while producing a near total wipe out of your common shareholders and other investors? Who else is gonna give you a gig like that except some OTC penny stock IMHO? Who?
2)"Magna is still putting money up and risking cash that could be used for more profitable ventures in my opinion. "???
Lending to cash poor, financially desperate penny stocks/companies is MAGNA'S ENTIRE BUSINESS MODEL- it's what they do, it's their "forte" and expertise. BHRT is their exact, core, key type company they loan to if you look at their history. Magna makes nothing but money on deals like BHRT- far, far greater returns than they'd make anywhere else typically. Where else does a "lender" on average make at least 50%, 100% maybe 200% or even 300% return on their money, often in a period of 6 months, maybe 1 yrs tops? Only payday loan joints, hard money lenders and maybe the mafia can get similar returns as far as I'm aware?
Again, Magna, Asher, etc are "hard money" essentially, aka lenders of LAST RESORT- they nearly always, only lend to cash poor, financially poor condition, OTC penny stocks- that's the business they're in. Their model is based on, and results in dilution, dilution and more dilution and discounted and cheap shares going up to be "flipped" and flipped quickly by the "lender". And in return for the risk they take, they build in all kinds of "provisions" and stiff "fees" and "discount formulas" and high interest rates, etc that essentially make them like the "house" in Vegas, making it nearly impossible for them to ever lose on a bet.
The LOWER THE PRICE GOES, the more money and more shares firms like Asher and Magna make. They essentially can't lose, short of a full up BK filing. When the stock is at .0001, Asher or Magna are often still receiving and then quickly unloading tanker ship loads of common shares, when the share count is finally at like 6 BILLION shares O/S or whatever. Read some of their case histories, right here on I-HUB. There's entire pages and threads dedicated to Magna/Hannover and Asher that show exactly how they do what they do and what happens to the underlying common shares in almost all cases.
My opinions- it's obvious why Magna lends to OTC penny stocks- cause they make enormous profits. No more complicated than that. Why do a couple of people stay at BHRT? Cause they're getting paid richly, no matter what happens to the stock or common share holders, no matter how poor the company performance or financials are, no matter what condition the financial stability of the company is, etc IMO.
AI
