Hi J77- that's true that very big debt in already gone in June: a great point for Hkup and management. Also true that there were too many DB and lot of dilution. Hope they really consider NOT to do the RS: they could do much better without finding new unexpected solutions All my best & thank you so much for sharing these info :)
Ditto but only confirms per their 8-K that the parties referred to must be the toxic financiers who management fell into unholy alliance with as I've been saying, to cover their huge and growing debt, mostly to their own huge salaries/perks/debt to their OWN other company for the underlying software etc.
Who ELSE could they be referring to here? I didn't say management was converting their own preferreds to commons, price too low for them to waste those shares yet! And they'd have to file for that.
From their 8-K:
"We believe that, among other reasons, due to the conversion of previously issued convertible notes into the Company’s common stock and the sale of such common stock, the closing bid price of the Company’s common stock has fallen below $0.01 for 30 consecutive calendar days from September 11, 2014."
(This must refer to Asher and JMJ Financial or maybe more... didn't they have to wait a certain period before converting? Doing so right away shows little faith in the co's future! Did that happen during the brief spike early Oct.? Did they engineer it somehow? Maybe with helpful MM's, a little P&D? Nah, that stuff never happens, right?)
Here's the facts of the company's finances and getting WORSE. Their only prayer as I've also been saying, and which they clearly want per their paid promo's, is to sell to a bigger company on the basis of their subscriber base allegedly to be 350,000 free, 10% conversion rate to paid they're claiming.
Meanwhile their own management bonuses grow based on #'s of subscribers PAID OR NOT, PROFITABLE OR NOT...
I DO think and have been saying here that the R/S is just "maybe" and will depend on FINRA approval for all options incl. they have approval of a 30BIL A/S god help us if they use that! Which is worse: that sort of dilution or an R/S? Devil's choice.
Here's the financial facts so they'd better pull the rabbit out of the hat soon:
On the financial front HKUP is not doing particularly well either. Here is what the company reported as of June 30:
$80 thousand in cash $597 thousand in current liabilities $93 thousand in revenues for Jan-Jun 2014 $1.7 million in net loss for Jan-Jun 2014 (X2+/year) The company has notorious toxic financiers such as Asher Enterprises and JMJ Financial on its books as well. Notes issued to both Asher and JMJ convert at a 40% discount.
HKUP told investors the company had its previous record growth month on September 3. In the month leading up to yesterday's session HKUP dropped from $0.015 to $0.002 all the same, so there's no telling whether this new price spike will be sustained.
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