I agree the financing is what it is, but it will be interesting to see if management can do anything to improve the situation. Glenn is the "financial" guy, so I hope he has a plan.
They owe $3.185 million in principal and $2.0 million in interest on the $5.6 million Senior Secured Promissory Note (with the infamous $0.08 conversion feature). They've agreed that they can only prepay $3.6 million on that note, so, if they had the funds, they could pay off the interest and another $1.185 million in principal. That would equal $3.185 million, or about 39 million shares if converted. Eliminating that overhang starts to really change to profile of this investment.
It was interesting in reviewing the history of this note. In April 2011, the conversion price was amended from $0.18 per share to $0.08 per share. They didn't point that out in the press release, but its in the loan documents. Since we were trading in the 0.40-0.50 range at that time, it looks as though Platinum seriously played hardball..i.e., agree to this or no extension and we are shutting you down.
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