Pervasip Corp (PVSP)

[Arthur]

Coy One, foreclosures happen every day in the US, I don't have to tell you.

"That is crazy talk. That's like saying a bank would rather foreclose on a house than have you pay the note."
Pervasip is dead flat broke. They can't pay the $16M, they can't pay the $3.2M, they cannot even make the $482K quarterly interest payments on their loans.
And the company cannot even pay its officers salaries.

By foreclosing the company, NetCapital would become its sole owners. The company would continue with the same employees, the same servers, the same contracts, but under a new management.
And no more pesky shareholders.

There was a reason why CEO Riss repeatedly bought shares into his own company, and why CTO Marks converted his back pay into shares (and warrants for more, of course).
It was because that influx of money was the sole recourse to avoid bankrupty. It was to pay the bills.
PVSP also floated one (or several) convertible debentures, which torpedoed the share price.

In Q2, Pervasip will post another $700K loss. Maybe in Q3 the loss will be smaller.
You're investing in a company that's deeply into debt, and it will take several quarters to turn the company around (if it's even possible).
The VOIP market is extremely competitive. Apart of giants like Skype and Google Voice, there are hundreds of small VOIP companies, all competing for the same pie.
Pervasip is barely in the game.

"If PVSP is good enough for them why wouldn't they be good enough for me."
And now, the only way PVSP can stave off bankruptcy, is to transfer equity to NetCapital.
That doesn't help you as a shareholder. Sorry.

That's my crazy talk anyways.
And, Napster ended up bankrupt, remember ?