Resonate Blends Inc (KOAN)

[mdimport]

There's an additional $250,000 that needs to be raised, over and above Auctus, plus deferring the debt makes it much more expensive.

Take the block as $1M, with 1% / month accruing. Deferring the debt for say 2 years causes an ~$250,000 in unnecessary interest payments without paying down a penny of principal. A R/S raises the share price and debt conversion settles the $1M cash requirement immediately.

The fact is the company has a history of losses, so it's not in any creditors interest to wait 2 or more years just to see if the company managed to turn a small real profit at that time. That just places unnecessary risk on the $1M creditor, especially seeing there's a history of voluntary defaults. No-one in their right mind would take that risk without collateral security.

Easier to ask what collateral security one want if they were loaning $1M. It'd likely include security against the principals private residence, and other hard assets.

Having said that, successfully suing the people who advised voluntary default would reduce the cash requirement, so the size of the R/S would be much smaller. It would also provide a bump up in share price since the debts outstanding against the company would also be much smaller.