I'm of the opinion that Hanover didn't get into this loan to make 8% interest. The 8% was more of default trigger in case the company went south, which we know, they aren't growing south and creating tons of revenue and deals.
Hanover doesn't want a bunch of worthless shares in the sub-penny range as payment for their loan.
I strongly believe, that they fully intended/intend, to execute the warrant price that Dror gave them of .15, when the stock goes to 20s or 30s.
Hanover's intention in my opinion, was to bank on the way about by executing purchases of the stock at a lower price than it will be trading Dec-Feb. They will make much more money executing warrant purchases of .15 when the stock is in the 20s and 30s.
That is why I believe, that Dror will pay 1/3 of the loan to make the public happy, and refinance the rest with Hanover, with a debt covenant date of late 2015, so that he gets breathing room, and Hanover gets to make much higher percentages early next year, by executing share purchases at .15, while the stock is trading at .30 or higher. They will make a boatload.
These lenders aren't in it to pay their mortgage payment, they're in it to buy a new yacht in the Mediterranean.
my 2 cents
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