KWBT is undervalued.
PPS fell with broad market.
Negotiation position of Kiwa Biotech is not very weak as you suggested. The PR stated their collected revenues are in commercial bank notes which acts as collatoral. This collateral places them in a strong negotiating position. The previous $14m loan facility (line of credit still in the pipeline) was approved based on the banks due diligence of Kiwa Biotech.
Management could have used more toxic notes that would give them a 6 month window at least with no dilution and an option to repay in cash. Instead, they indicated they want alternative Chinese bank funding and Chinese investors to fund them temporarily. We do not know what agreed value these new investors will place on KWBT. It is likely they are long term shareholders with an interest to see KWBT uplist to a major exchange if they want to get a return on a large investment (see picture of CFO in the Hong Kong Nasdaq office). These investors will no doubt increase OS but they may increase KWBT PPS while doing so if their valuation reflects revenues. Kiwa management are required to do what is best for KWBT stock. They believe these Chinese investors will be better than more convertible debt.
I think the main unknown is what price target these Chinese investors will use or agree with Kiwa Biotech management. If the Chinese investors price target reflects the business (which Kiwa management should defend), then the number of new common shares of KWBT may not be disastrous for existing shareholders i.e. not "new notes written all-over it". Once their investment in KWBT is completed, which is supposed to start in less than 2 weeks, we should see the new OS level and their price target range.
New filings (e.g. November) should remove the 'Stop' sign and restore OTCQB status. That should help KWBT stock.
Confirmation in new filings of all past convertible debt payoff will allow the proper discounted cash flow valuation or based on price-to-sales, etc. We may then see a return of investor interest.
