Third Bench Inc (THBD)

[tigerpac]

All that work to keep the company at breakeven then they default on two convertible note to Canouse and Hicks.Which of course is never good for shareholders.

NOTE 13 – DEFAULT PROVISION ON CONVERTIBLE NOTES
The notes issued in July and September 2021 have step-up provisions which allow for the notes and accrued interest to be stepped up by 50% once these notes are in default. This occurred in the current period and as such, the face value of these notes and accrued interest was increased by approximately $460,000 and $100,000, respectively.

If you look at the last page of the report you can see the damage cause to shareholder from the conversion of preferred shares. The company spins it as they are retiring preferred debt. But in actuality it is costing shareholders significant common share dilution . 10,000 - 16,000 common shares for each 1 preferred share retired.