RedHawk Holdings Corp (fka SNDD)

[iamadog]

Adar Bays has confirmed what ExeLED and other microcaps wrung-out by abusive lenders have consistently argued: that a floating-price conversion option—an option with a strike price guaranteed to be “in the money” by a certain fixed discount—has obvious and substantial value, and that—when given as consideration for a loan—the value of that option must be included when calculating the total interest charges.
Consistent with the directive of Adar Bays, the lending practices of firms like LG Capital must now be carefully scrutinized by the courts when looking at interest charges for possible violations of New York’s criminal usury laws. Indeed, with the prior erroneous judgment in ExeLED now set aside, the record in the case has been reopened; if the evidence shows that LG charged interest at a rate of 25% A.P.R. or above—its note will be declared null and void in.