Toxic Funders

[trader59]

For your Auctus file:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159111560

The link to the proposed order is included, but it is OK to focus on the screenshots from it. In this bankruptcy "plan" to reorganize, the unsecured creditors get 100 shares per dollar of debt (effective PPS of $0.01, trading today at a pumped up $0.03), there are convertible notes being given for the DIP loans and additional financing Auctus is providing with a 10% premium and a "lowest VWAP within 5 days of conversion," so no windfall there. The windfall comes from the warrants priced at $0.0005 and $0.0010, and you can bet that there'll be an attorney letter to exempt the stock from restriction since Auctus wrote the plan, has lawyers, and this is what they do. They raised the A/S to 300B (from 2B) and will be selling stock for a windfall until it falls below the strike prices. Only restraint is they can't become beneficial owners.

So, now we've seen a toxic bankruptcy reorganization plan.