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Re: Koog post# 81542

Tuesday, 10/05/2021 7:04:27 PM

Tuesday, October 05, 2021 7:04:27 PM

Post# of 194740
Perhaps you should review the definition of "toxic financing". There is no interest on any loan. There were shares issued by LWLG for cash received from LPF and the transaction was at current fair market value. Control of any future issuances is completely in control of LWLG.

What Is Toxic Debt?
Toxic debt refers to loans and other types of debt that have a low chance of being repaid with interest. Toxic debt is toxic to the person or institution that lent the money and should be receiving the payments with interest. Toxic debt generally exhibits one of the following criteria:

Default rates for the particular type of debt are in the double digits
More debt is accumulated than what can comfortably be paid back by the debtor
The interest rates of the obligation are subject to discretionary changes
Any debt could potentially be considered toxic if it imposes harm onto the financial position of the holder.

https://www.investopedia.com/terms/t/toxic-debt.asp

From today's prospectus:

On October 4, 2021, we entered into the Purchase Agreement with Lincoln Park. In connection with the Purchase Agreement, on October 4, 2021, we also entered into a registration rights agreement, or the Registration Rights Agreement, with Lincoln Park, pursuant to which we agreed to take specified actions to maintain the registration of the shares of our common stock subject to the offering described in this prospectus supplement and accompanying prospectus. Pursuant to the terms of the Purchase Agreement, Lincoln Park has agreed to purchase from us up to $33,000,000 of our common stock (subject to certain limitations) from time to time during the term of the Purchase Agreement. Pursuant to the terms of the Purchase Agreement and Registration Rights Agreement, we have filed with the SEC this prospectus supplement regarding the sale under the Securities Act of the shares issuable to Lincoln Park under the Purchase Agreement. Pursuant to the terms of the Purchase Agreement, on the date of this prospectus, we issued 30,312 shares of our common stock to Lincoln Park as Initial Commitment Shares under the Purchase Agreement. We are obligated to issue up to 60,623 shares of common stock as Additional Commitment Shares pro-rata in connection with the sale of shares to Lincoln Park under the Purchase Agreement. On the commencement date of the Purchase Agreement, which will be as of the filing date of this prospectus supplement, we sold to Lincoln Park 327,511 shares of common stock for aggregate consideration of $3,000,000.



We may, from time to time and at our sole discretion, direct Lincoln Park to purchase shares of our common stock upon the satisfaction of certain conditions set forth in the Purchase Agreement at a purchase price per share based on the market price of our common stock at the time of sale as discussed below. Lincoln Park may not assign or transfer its rights and obligations under the Purchase Agreement.

https://ih.advfn.com/stock-market/NASDAQ/lightwave-logic-LWLG/stock-news/86217653/prospectus-filed-pursuant-to-rule-424b5-424b5#LWLG_424B5_HTM_S_LINCOLN_PARK
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