Greetings my fellow SCRC shareholders (as well as those sitting on the sidelines waiting for a signal). Today the SCRC shareholders received more validating news:
1. No convertible notes since October 22;
2. No convertible notes will be written in the future; and
3. Scrips started prepaying the remaining notes!
This is the most exciting news the company has provided in a long time. Last week's news on Hong Kong's approval of RapiMed and the 62% increase in the joint venture revenues were validating and demonstrated the business is moving forward on different fronts. Despite this positive news, the drag on the share price continued as the noteholders and Ironridge aggressively battled each other to drive the price down. Today, however, Scrips took a significant step toward removing the drag and easing the non-stop selling pressure. By squelching many concerns over the company's convertible debt structure, management lifted much of the overhang that has kept a lid on the share price.
Many have questioned whether Scrips was still writing the convertible notes. The company answered in the negative: "I can assure our shareholders that the company has not taken on any additional convertible debt since October 22nd of last year." This is fantastic news...no fluff or sales puffery! And equally or more important, Bob Schneiderman said, "[m]oving forward we will not add any more of this type of debt to our balance sheet as we are experiencing growth in our existing areas of business and expect increased revenues based on new ventures and products." Wow! This news further validates the company is the real deal -- a very rare penny stock.
Just knowing Scrips is finished writing the toxic notes removes a lot of uncertainty and demonstrates to the shareholders there is light at the end of the tunnel. As if that wasn't enough, Team Scrips piled it on even heavier today by deciding to start prepaying the remaining notes. And the company did not simply issue a wishy-washy, forward-looking statement that it "anticipates" or "intends" to pay off some of the remaining notes; management actually "issued the first payment on its convertible note with the largest principal and closest conversion date." Boom...this is beyond fantastic! Indeed, words cannot describe how important this is to the ScripsAmerica turnaround story. Today's news comes at a great time and is a well-deserved shot in the arm after suffering through what appeared to be an unlimited supply of toxic noteholders dumping share after share after share and manipulating the pps lower to steal even more shares. This chapter, however, is thankfully coming to an end.
Of course, the few unfriendly noteholders with converted SCRC stock will sell their remaining shares, as will Ironridge. That said, the company cleaned most of the drag on its stock price today. I am confident the toxic selling will start to dry up and the manipulation will end, allowing the market to better realize this company's vastly improved fundamentals. And after all of this drag is cleaned up, the angle of ascent toward much higher prices will steepen and the velocity will accelerate.
In my strong opinion, Bob's decision that his company has sufficient cash to start prepaying notes also implies that ScripsAmerica has turned the corner and is doing better financially with a much improved business outlook. Furthermore, today's news provided a strong buy signal to many potential buyers, and I strongly believe more buy signals are on the way. Indeed, I am psyched and looking forward to reading more as the ScripsAmerica story continues to improve.
Congratulations to all the loyal and patient longs for hanging tough -- Rock Steady! We should all rest easier knowing that the deep water well is being capped and the clean up is about to begin!
Many thanks to Bob Schneiderman, Jeffrey Andrews and the rest of Team Scrips! You gentlemen delivered bigtime!
Bsav88atty
