Toxic Funders

[gitreal]

Kramer probably has more than a few other corporations to funnel his activities through.

One thing that constantly amazes me is how little most investors understand about toxic convertible notes. They see the maturation date on the note, usually a year, and assume that there will be no dilution for a year. And they see the interest rate, which is not any worse than a credit card. So...it's just a funding mechanism, all is good, right?

They completely miss the conversion date, usually 180 days. And they miss the cut-rate conversion terms, 65%, etc.