Potnetwork Holdings Inc. (fka POTN)

[billytbone]

POTNETWORK HLDGS (OTCMKTS:POTN) a Toxic Debt Disaster.
POTNETWORK HLDGS (OTCMKTS:POTN) a Toxic Debt Disaster

Here are the facts

From the filings (Original) POTNETWORK HLDGS (OTCMKTS:POTN)

Promissory Note in the principal amount of $1,850,000 pursuant to the terms of a security purchase agreement dated of even date therewith.

The security derives from an original promissory note dated June 2, 2014. The annual interest on this note was eight percent (8%). But the interest does not accrue since the addendum agreement in exchange for a fixed conversion rate of $0.003 per share.

After the conversion of $126,000 in the 2nd quarter, the balance of the note at June 30, 2017 is $1,836,186.

Let me do that Math for you, 42-M new shares a Quarter, I have no idea how the .003 is getting past the regulators as it is as toxic as debt can be, the fact is this will end in disaster.

The debt spiral will crush the shareholders considering there is over 600m more shares to be issued.

Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall.
http://www.livetradingnews.com/potnetwork-hldgs-otcmktspotn-toxic-debt-disaster-62133.html#.WtuqslKoutW