GDT Tek Inc. (fka GDTK)

[AAEM]

I think the bond offering in both companies GDT tek and 1st global is because the management are related and will have the same thoughts. In both companies situations, it is more achievable to get funds from bonds vs. stock. Bond holders can take over the company from the shareholder as they are creditor, if they didn't perform. Shareholders have to bear the risk of losing the investment, if the company went down. Bond holders if the company didn't pay, it can take over the company from the shareholders.

Both companies are new and have no assets and just a business idea. Big investors believe in the idea but it is not materialized for them to invest in the companies equity. In the worst case, they will get gurantted some interest. In addition to the bond interest, they are getting portion of the income like steriwave.