That's back when the company was trading over $.30 cents a share before a huge bag of holder destroy the PPS by paying the a huge some of money to pump the ticker. Though it's not company's fault the company took a hit of what people say "pump and dump".
The conversation price was $.10 yes but now that the company is trading ten times less, they would have to issue 10 times the shares if they have to cover the loan hoping that's not going to be the case.
When the company register the stock under Section 12(g) of the exchange act, the company have to have enough shares available to pay it's debt from current PPS. That's why the company needed to raise the A/S this much to INCASE if they need to cover the loan and to cover for incentives and employee stock purchases.
When it comes down to it, it's going to be up the management to prove that they can cover the loan in cash instead of diluting the shareholders. If the company take the investors for granted i'm sure the company would be not be only destroying the shareholders but they would be destroying the company as well at the same time and no one would be investing in them in the future.
I believe Q2, Q3, and Q4 results will speak itself. Q1 results was good even though the net profit was $44k considering the company didn't operate at loss at all. The company also stated that the profit margin throughout this fiscal year to increase dramatically as well as revenues.
There's always pros and cons of course.
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