East Coast Diversified Corp (fka ECDC)

[RJ5]

Ironridge is a predator and ECDC is its latest prey.
Almost every small cap they get into results in a death spiral.

Ironridge is not in the risky penny stock investor business.

Ironridge does not give a dime till they get their money upfront.

So that means ECDC has not received a penny,(and not likely to anytime soon) because of the conversion rate.

Then I came across this:

An important characteristic of this kind of debt is that it often carries conditions like a quarterly or semi-annual reset of the conversion price to keep the conversion price more or less close to the actual stock price.


The companies that are willing to agree to financing on these terms are often desperate and could not obtain funding through any other means. The terms, though viewed by some as onerous, give the lender a potential way to recover their debt regardless of what happens to the shares of the company. The lender would have a potentially greater gain if the shares were to increase in value but if they do decrease in value, there is some protection. If this were not the case they would probably not be willing to lend the money given the poor risk profiles of the companies interested in this type of financing.