All I can say is that I know by experience with HYRF that BDC status can be abused. The value of a share in a BDC is very subjective. The portfolio companies themselves were not publicly traded, but wholly owned subsidiaries. HYRF's previous CEO once issued a rash of false and misleading PR's about these subsidiaries.Numbers were not non existant...they were just over stated or improperly stated. The price of HYRF stock went through the roof because of valuations INFERRED from the figures the CEO was claiming for the portfolio companies, nearly all of which were off in the future and could not rightly be claimed as a sure thing.The SEC troubles came from these claims. Now, provided HYRF gets these darn financials done and filed and HYRF becomes fully reporting, we will know what they are doing one way or the other. Under BDC status, HYRF O/S went from 80 Mil to about 300 Mil with absolutely no warning or word from the company of any kind.Fortunately the ex-CEO ownes about 180 Mil shares and is barred by a settlement with the SEC from selling penny stock...hence the price has to be $5 before it is not a penny stock.That is a large block of common shares locked up for a long time. But BDC status provided neither transparency nor insulation from dilution. I do know with reasonable certainty that HYRF has very good technologies and products. I know that sales are going up and that big companies like Tyson Foods and ConAgra are testing and using HYRF systems. It is my understanding that the financials may not show big profits now, but will show little overhang by way of debt. I also believe the class action will soon be settled. So if HYRF gets back to running a good company ( under the new CEO) we will be back to square one...a company with a growing customer base for all of it's products and (hopefully) no need to raise capital to go forward. The revenues from sales and services should take care of operations.
And please, to any who read this, I have spent many , many hours researching this company and it's products. I know the products are very good. I have conversed with engineers and plant operators about HYRF systems and have received glowing reports. I am convinced that if this new CEO does thing thing right, this company has every reason to succeed. But I do not KNOW what will happen. Given their past trouble with the SEC and with a class action by shareholders, I can only hope they don't try any stock flim-flammery again.
jc
