Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

Thanks, Lakingsphan, for the head's-up regarding the 8K announcement of the latest borrowing by the company. My read of the documents is that they're borrowing 200K (not 245K as they get to use only 200K), paying interest (or equivalent) of 45K, and the term of the loan is half a year (there is an alternative shorter term, but the effective interest rate would be so high as to make one wonder why the loan would be prepaid). So to me this comes out to an annual effective rate of 45%, which means that the company is still so averse to dilution that they're OK with essentially usury.

This financing development makes me wonder if they're still pursuing an infusion of equity, as was circulated in May (I'll leave it to someone else to ask Paul Knopick). It also means to me that they still haven't achieved profitability - or if they have, it's at the cost of building up receivables. While everyone is looking forward to the income statement for the year, which we'll see in mid to late September, it's the balance sheet which will be almost as interesting to read (of course what's always most interesting to read is the footnote section of the documents).

Finally, though the lender of record is Iliad, that's just another arm of Typenex where most of the debt has been sourced. It says something that Typenex is convinced of the financial stability of the company that they keep on lending.