Yes, I believe you are correct IMO. That is the industry wide, pretty well known and published reputation of Asher- even to the point that many people are "trying" to get legislation passed to prevent those very scenarios from being able to happen. But apparently, at least as of today, what the guy/firm does is apparently "just inside" the letter of the law so far, and he's a free and VERY wealthy dude apparently because of what he/the firm ASHER does.
I pointed out before, I-HUB has an entire "ASHER" page/thread someone built and tracks companies, their demise often who have gotten into "convertible share" deals with Asher and their ilk (they're not the only company doing these kinds of deals- just one of the better known ones)
What many people, most- just can't seem to understand apparently, is the mechanics/mechanism of what the "floorless" convertible share, steeply discounted share deals mean and do and how they motivate Asher to eventually want to crush the share price as low as possible. The lower the share price goes, the more shares they get to "convert", the more they can short, the more they get again, essentially until zero. In other words- ASHER can't lose on the deal. They are like the "house" in Vegas on these deals and have it rigged, so no matter what happens, they win in the end.
I'll post another link again that "tries" to explain the "floorless" or "death spiral" or "toxic" - whatever term you want to use, convertible share type deal- and why they work the way they do.
That's about as good an explanation as I've seen- as it gives an actual scenario with actual numbers - to show how much FREAKING PROFIT someone like Asher can make on their money. It also starts by showing the difference of the more "standard" deal where the "conversion rate" would be fixed or at least limited- and not "floating" or "floorless" - as in all the BHRT deals, where it's a formula based on the 3 days lowest price of the prior 10 days trading, blah, blah, blah- something to that effect. That is the "floorless" conversion part. Further, you'll see that on top of all that- Asher or whoever is getting the shares at like a 45% or more discount to market. It's the financing of last resort- the terms are scorched earth brutal IMO. Brutal- and that is who/what Asher their ilk is known for. They don't want to make 10% or even 25% return on their money- these dudes make like a 100% or 200% probably on each deal they do, and they again, rig it so they essentially can't lose, whether the stock goes up, or if it goes down- and they make more if it goes down.
And all this, is not even getting into discussing the potential implications now of all these warrants floating around out there, in particular, the recent ones granted "in the money" essentially- as in real low strike prices on them. I'm not smart enough to figure out how those play into it all- but they have to have some major influence, as they put a boat load of um out there, and they are at a price that has them "in the money" still, as of today (like 1.6 to 3 cents I think was their strike if I remember).
So, it's interesting times at ole BHRT to say the least. IMO, cash is what's it's all about at this point. Cash to operate, cash to open the doors and pay the day to day bills, and most important cash to pay the most immediate and critical of the debt- the debt that if defaulted - can shut the entire show down IMO. Cash is where they are at- they need cash, and they need it every day/week/month and they, in their own 10-K warning indicated they need a "lot" of it, and need it sooner than later.
That's my 2 cents, and agree on your "take" on Asher and what they will be motivated to do to the shares.
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