Protagenic Therapeutics Inc. (PTIX)

[eddy2]

Private placements of collateral for debt are very complex and are often if not always paid through equity dilution.

When paid in capital through retained earnings ie: the issuing of equity paper too the ones who put up the collateral for the debt by the means of restricted shares known as outstanding shares then trade there debt with the banks debt and the bank then sells the collateral or debt too new investors.

The investors who last bought the issued revolving debt then become the new collateral holders.

The question then arises what of the interest of the previous collateral holders. They in fact become unsecured creditors to the company ie: holders of treasury stock.

If there is no treasury then there interest has been abolished or removed. Held in trust by the government as a part of the tax debt owed to be paid by depreciated assets if and only if those costs can be forwarded to the customer or client of the service offered ie: retained earnings for the sale of equity above the capital cost of the equities par value.

You scratch his back the next group will scratch yours.