FTE Networks Inc (fka FTNW)

[BenjaminGrossbaum]

DEBT REFI (just my interpretation): $95m x (LIBOR + 9.5%)[12.5%] = $35m. $35m + $95m = $130m total debt and debt service over 3 years

Add $35m/4 = $9m/q debt service added to the operating loss rate of $2m = real cash loss of $11m/q.

The debt will be reduced over the 3-year period (2021) as Lateral Investments converts into common and sells into the market. This gives more time to pump and sell shares. It’s easier to promote cheaper stocks to small investors, but the dilution will be extreme. And this does not solve the problem of getting more money, which the balance sheet says they need. Lateral will get out, management will continue to receive high compensation as the company loses money every quarter and the real investors get diluted into oblivion but management I’m guessing has anti dilution provisions that will protect them.