Collateral for a loan or collateral for a loan in regards to toxic debt financing?
I warned you so in regards to the most recent increase in A/S; and state for the record, IMO, more to come.
Why, simple, there exists large debts on this company, both disclosed on the most recent financials, AND NOT ACCRUED AND DISCLOSED.
We have seen the numerous promissory notes were issued that have stock conversion features, with personal guarantees of the CEO.
We have seen numerous liabilities from the ill fated OSP crew abandonment...in the millions.
We have seen promissory notes posted and cited that have personal guarantees of the CEO.
We have seen discussion that most assets on the most recent financials are impaired and should be written off.
We have seen numerous court cases, initially denied by the company's IR representative, but ultimately acknowledged once court papers produced.
We have seen the resignation of several legal (both corporate and SEC).
WHY WOULD THIS COMPANY NOT HAVE FURTHER TOXIC DEBT AND OTHER CREATIVE "SHARES ISSUED AS COLLATERAL" FINANCING'S IN AN ATTEMPT TO RESOLVE SOME OF THESE MOST PRESSING DEBTS. THESE DEBTS WILL FORCE THE COMPANY, AND MORE IMPORTANTLY, THE CEO PERSONALLY, INTO BANKRUPTCY, UNLESS THESE DEBTS ARE RESOLVED. They must be resolved for the health of the company...they are not going to go away...with mis information, personal attacks, deflamations, and other noise. Company needs to be proactive, and I see the A/S proactively. Company needs to resolve these debts and simply get over personal attacks and defense of their creditors.
IMO, this A/S increase makes complete sense. But does this make, in reality, the A/S 6.5 million? The newly authorized 5.9 billion shares, plus the supposed unauthorized issued remaining 700,000 shares via illegal promissory note conversions.
LET ME SAY, THESE SCENARIOS AND CONCERNS HAVE BEEN STATED IN DISCUSSIONS ON THIS BLOG SINCE 9/2012 AS "ROIRESEARCH" HAS POSTED RECENTLY IN REPOSTING MID 2012 POSTINGS.
Yes, the A/S is affected and that will affect the PPS. Yes, ultimately, the shareholders will have an effect from the lack of revenues, the failed attempts to start meaningful operations, the heavy debt (most defaulted), the impaired assets and balance sheet window dressings, the FINRA and other regulatory investigations, etc etc etc.
One positive note, I do honestly believe that settling these debts are positive to both the shareholders, CEO, and the company as a primary and necessary step for recovery of this company.
It is like a family in crisis during the recent housing crisis and mortgage melt down. If one is losing their home from foreclosure and debt default; one must either refinance/negotiate/pay the debt or find a new place to live.
DON'T BE CAUGHT HOLDING THE BAG!
