The article is referring to the convertible Promissory notes issued to acquire SUNworks. However at the rate SUNworks is increasing revenue and profit, they were clearly worthwhile and the farthest thing from "toxic". This is the perfect example of how to properly use this type of financial tool.
The reason the author and many refer to them as "toxic" is because in many OTC stocks or poorly performing, non-revenue generating companies, the notes are used to generate cash for operations via debt in return for dilution. They are toxic to shareholders of non-revenue generators because they lessen the value of their shares every time they are used (every time they are out of money). Poor companies use them when they run out of money, again and again, creating the "death spiral" of debt and dilution.
Two ways out of a death spiral are "revenue" and/or "profits", which we have both, not to mention an seemingly exponentially increasing revenue stream. The farther we get from the notes issuance and/or conversion, and the more revenue we generate, the less "toxic" they are. This is a very basic overview, if anyone wants to chime in further or correct anything, please feel free. Thanks!
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