"whenever you look at the companies thatJohn M Fife's various entities have funded you get a list something like this:"
The fact that John Fife & Mark Grober/GHS Capital/ GHS Investment are involved speaks volumes in terms of the kind of "BUSINESS" Allen & Watkins are conducting. I won't go into Allen & Watkins past or their gaming site Big Stakes 5...
The only thing they have in common is an average price around ZERO.
I suspect most of them don't even trade anymore.
You have to wonder how can a guy make money lending to companies with minimal assets, no profits, and usually not even any revenues.
Oh, wait!
I forgot, all those loans were in the form of CONVERTIBLE bonds -- like the one CTTC just issued to Tonaquint.
The SEC says:
"Because a market price based conversion formula can lead to dramatic stock price reductions and corresponding negative effects on both the company and its shareholders, convertible security financing with market price based conversion ratios have colloquially been called "floorless", "toxic," "death spiral," and "ratchet" convertibles."
Oh, I get it!
PIPES, toxic convertibles, making money lending to broke publicly traded companies, fraud, etc etc -- it's so much clearer now.
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