They converted debt to shares for sale and those were dumped into the market, that is why the float exploded here to over 2.3 billion in a hurry.
It is legal if they properly convert the debt within Rule 144. How else do you expect them to pay their short term money loans? They certainly had no money on the books and their only collateral was already tied up in other debt deals. That is why they went to toxic financiers, they gave small loans with ridiculous terms, floorless conversions.
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