Resonate Blends Inc (KOAN)

[mdimport]

Scammers have been trying to avoid paying their debts for hundreds of years in various forms of fraud, and the legal system is very wise to it. $TXHD would be pretty dumb to do the same with the simple fraud in your example. What happens in the scenario you outlined is the debt is recorded as $20,800 (+ 29.99% APR default interest (why settle at 22%?)).

The portion after that is best, share price drops because pump and dumps work that way, but the $20,800 debt remains. Market cap has dropped, but the debt relative to the market cap has increased. If the debt remains unpaid, it can be forced conversion at 90% discount to the Bid at the lowest price in the preceeding 30 day period.

Who wins now: debt holder, or company? While you think about the answer default interest is also accruing.