ToughBuilt Industries Inc (TBLT)

[John_Vallay]

Why would they file bankruptcy if they can raise cash through equity dilution.

if they were to file bankruptcy their shares would be cancelled and they would not have the ability to raise capital.

You only file bankruptcy for 1 of 2 reasons:
1 - you can't raise capital
they can raise capital through dilution
or
2 - You can not repay your debt
They only have 39 million in debt of which 29 million is accounts payable
The accounts payables are probably due to their suppliers so it is safe to assume their suppliers will work with them becuase they want to continue the business relationship

Toughbuilt has a successful past history of raising capital and paying down debt when needed to do so. This is all done on the backs of retail investors through very good investment banking and terms.

It is a never ending death spiral of the stock price, but continued growth of the company.