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Re: Arthur post# 113945

Wednesday, 10/19/2016 10:47:24 AM

Wednesday, October 19, 2016 10:47:24 AM

Post# of 221942
OK

Lets first stipulate the company isnt part of a premeditated scam, otherwise why bother discussing this.

The fact a company accesses toxic capital is mainly because its their last resort, there are no other options or... the exec management team just doesnt understand what theyve gotten themselves into

So the comparison of straight debt to toxic doesnt fly due to the fact straight debt just isnt available to these type companies, neither is straight equity

Also, for the most part, these financings (keeping in mind our stipulation up above) arent usually to move the company forward in execution of their b-plan. The capital is really a survival mechanism to remain in business which is usually accompanied by additional multiple rounds for the same purposes.

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