Halberd Corp (HALB)

[traderjoe3]

ONLY if the note holders can recuperate the initial $200K up front investment then will they start to profit but if they can't sell their shares, or a limited amount, then there is no profit, hence no death spiral..... correct???

Or there could be another VERY GOOD possibility the note holders aren't looking to destroy the company, with a death spiral, because they believe in products and the management and they are waiting to sell their shares when then time is right. It was stated that they are PRIVATE INVESTORS so they aren't a bank or another traditional form of financing so most likely they can wait on their investment and work with the company without strict time constraints. It would be more beneficial, IE more profit, for the note holder to see the shares go up in price as opposed to driving the price into the ground. The note could have been converted long ago and sold off but it WASN'T so that is a VERY GOOD indicator that they note holder/holders aren't in an rush to sell off their shares meaning there is NO DEATH SPIRAL although that is a theory...........just not a very plausible one.