BioNitrogen Holdings Corp. (BIONQ)

[LongRun8]

Be careful what you wish for.

Mezzanine financing can be toxic depending on the terms. That could send the share price into a death spiral. Many OTC companies that participate in that type of financing have to do it on the financiers terms, not the company's. If they made a deal with Asher Enterprises, or one of the other common toxic financiers, count BION for dead. Asher would drive the share price down and then ultimately be able to convert the debt into millions upon millions of shares (the lower they can drive the share price, the more free-trading shares they would get to flood the market with).

BION's best bet is to get a traditional type of loan, but it seems to me that they are probably existing by issuing shares. It seems like whenever they have a traditional type of debt note due, they have no cash to pay for it.