The importance of the elimination of toxic funding...
As stated in one of the bullet points within the updated President's Message on the Dewmar corporate site:
"As previously reported, the Company successfully managed through a series of ‘toxic’ financing facilities. The Company has no new or outstanding toxic financing facilities. The ability to be more selective about capital sources and frequency of financing has been the direct result of implemented cost controls and increased sales."
Why is this so fundamentally important? Because it is usually the toxic debt conversions (into common shares at below market value) that lead to the downward price spiral for an OTC stock.
For those that are not familiar with the phenomenon, the toxic lender/share converter is given common shares discounted from the current market share price (often deeply discounted in the range of 40-50 percent from the recent avg lows of the stock price). The toxic lender can then sell all the way down to that discounted share price range and still turn a profit. The unfortunate consequence of selling into that lower share price range is that the next conversion has an even lower share price bottom, and therefore an even lower share price conversion rate. This vicious cycle usually continues until the share price is so low, that the company resorts to performing a reverse stock split (as an act of desperation) to get the share price back up (where is is again attractive to toxic lenders).
Since Dr. Marco Moran has stated that 'The Company has no new or outstanding toxic financing facilities', there should be no downside risk of the above scenario occurring in the near term.
As always, simply my opinion.
DEWM
