RB conversion loans have a fixed rate. February and March saw a lot of selling. But the stock price stayed mostly range bound: $0.020 to $0.023. With non-toxic lending, there is a price point below which the lender loses money, and they *don't* receive an ever-increasing number of shares. It's not ideal but it's kinder and gentler (lesser of two evils).
Those other three loans I highlighted as "conventional" have all the hallmarks of a "toxic" loan. This lender is inured against the share price because the "conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date". Said another way, the lower the share price goes, the more shares they receive, the more shares they sell, the lower the share price goes, the more shares they receive on the next leg, etc. They even have an incentive to push the share price lower because of the conversion price. It compounds on itself and the lender doesn't give a flying flip about the share price. They get their pound of flesh regardless.
All 3 loans have identical terms (with decreasing loan amounts) so I'm assuming they are all from the same lender. And I'm hoping they have been rolled into one another: $125K became $80K became $40K as they were partially paid off.
It's a fair question to ask if $PCTL's balance sheet can take out those "toxic" grenade(s). $115K in cash on the books. It seems the faster the company grows, the faster they lose money. Rosen tweeted something to the effect that there are only 2 toxic loans left with $90K on them. He did another $200K loan on April 14th. That would remove these "grenade(s)". But $PCTL also reported, twice!, that they cancelled the 447M in warrants but yet they're still on the books.
