CGrowth Capital Inc (CGRA)

[tk88]

BOND ISSUE---Company sells bonds for 1 reason--fund operations.It is a "loan" from bond buyers,they borrow funds,use them for operations---pay interest for 10 years,then pay the money back.nothing more or less.You buy a bond for 1 reason--earn interest AND get your money back.You read the subscription docs and see that proceeds are being used to build the business.Imagine you are the guy who bought a bond,sent your check then 2 weeks later see that most everybody else DIDNT pay for their bonds---they traded IOUs for IOUs,even better traded "equity" for their bonds.Doesnt sound like either of those 2 are sources for business building funds.YOU have become the underwriter !!You buy a bond thinking you will earn interest and return of principle from the business that ALL the bond BUYERS have generated--but its all on YOUR shoulders.I guess I need to re-read the Sub Docs to see how that gets done.never seen it before !!what is "equity" here ? somebody elses penny stocks ? sounds like SOMEONE got a good deal--who and why ?PURE OPINION--IF I bought bonds here and paid cash,I would not be a happy holder.The company has now cut collaterilization in half and buy the burden on MY shoulders.