I agree going private isnt likely especially in this type of business that has to rely so heavily on speculative capital in the early years, and no bank will touch this company.
They are in same position, need about $100,000 to $150,000 per quarter and only option apparently available was convertible notes.Something prompted this reverse as CFO probably could have kept this going for several more months. Looking at timing of when convertibles due that could have been converted it may have been a timing issue-may they didnt have new convertible note holders willing to step up to the plate and hold for 6 months , so CFO felt this move was necessary. Or (incredible as it may seem) he actually thinks he can do a private placement for $3 million.Convertible note holders usually dont go over 5% ownership, or if they do keep under 10% so they arent restricted on how much they can sell per quarter- so his options actually a bit limited.
A JV with better capitalized company may be the only option for the company, but after 2 reverse splits in less than 12 months wont help current shareholders( nor with this track record future ones either).
Terrible PR/IR, CFO just avoiding communication or putting out a press release-something prompted this move, so why not update the market ? What is he afraid of ? Market cant be worse than $.0001.
AI
