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Re: Sleepy2016 post# 17688

Thursday, 06/29/2017 7:09:57 AM

Thursday, June 29, 2017 7:09:57 AM

Post# of 97594
Actually, it happens all the time. These companies do that for a living. They buy debt in the companies and convert them into shares and are allowed to make further loans to the company as long as they are long-term with restricted shares. But in this case, in this company, the paper is aged over 12 months and now the shares are coming onto the market. Totally legal as long as debt and aged shares are all legit. There are only a couple of stock firms that will clear these transactions anymore and they're extremely stringent in the paperwork in the legal due diligence. This has to go through multiple check's both with the stock brokerage firms market makers as well as the transfer agents. The question is at legality, the question is whether or not this is a healthy way for companies to get funded because of the delusion that creates in the marketplace. For many companies, this is the only way to get funded until they have a product with Revenue out there. So it truly is the venture capital of the sub penny stock market.