Exactly toxic converter "won't want to kill the golden goose". You are also correct the debt ABWN spoke of was convertible note deals only. Prefferd shares with warrants are not part of that. Here we have convertible notes that need to be processed and preffered shares with warrants that will need to be exercised. The debt is now much less then the 2.7 million they stated a few days ago. The preffered shares with warrant though who knows how much of that is left and there were three series of warrants. Here we have all of that going on but only a 0038 pps to work with and probably only 1 reverse split allowed by FINRA within the next 3 months. Converting all of that stuff isn't going to be successful imo without the stock going on a run.
This thing reminds me of MDCN. You remember that one? Horrible financials. I think I remember it was 2016 it got hammered hard similar to this but still had tens of millions left in convertibles. It did I think a 50 bagger as its first dead cat bounce. Then after the first dead cat convertibles hit again, then a reverse split, then more convertibles, then it had a second dead cat which was over a 10 bagger. Then 6 months ( it could have been longer actually) after the first reverse split FINRA allowed for a second. Only reason MDCN ran like that twice was because converters needed it desperately to get pps back up to have room to work with again.
I really am suprised by some here who think FINRA is going to allow 3 reverse splits back to back to back. They stopped allowing that kind of stuff 3 years ago. As we are pointing out this thing is going to need several dead cat bounces just so converters can process through want they have left. If they only count on reverse splits then they will be left holding the bag of convertible notes with stock at no bid. Conclusion to me is there are way too many convertibles left here and no way near enough reverse splits and size of splits that will be allowed by FINRA to elevate pps alone. The converters are going to need some nice dead cat bounce to be able to clear out their conbertibles.
Knowledge + risk taking = prosperity
