Replies to post #148347 on Pervasip Corp (PVSP)

[Cooltabby]

This rock solid, making money hand over fist company won't miss any payments! We gonna be rich! PVSP Go us!


Sigh

[Carmil1]

yes, grounded in convoluted Mr. Apples style misinformation!!!

[Arthur]

What I just discovered reading the borrowing contract with TCA Global, is that not only the debt becomes convertible at the first missed interest payment (18% annual interest, that's quite a payday loan), but the contract also allows for "Voluntary Conversion", so TCA can elect to be paid in shares even if Pervasip has not missed any payment.

And then there is the "15%" discount (85% of the lowest recent share price).
That doesn't seem so bad... until you read the "Make Whole" clause.

Make-Whole Rights.
Upon liquidation by the Holder of Conversion Shares issued pursuant to a Conversion Notice, provided that the Holder realizes a net amount from such liquidation equal to less than the Conversion Amount specified in the relevant Conversion Notice (such net realized amount, the “ Realized Amount ”), the Company shall issue to the Holder additional shares of the Company’s Common Stock equal to:
(i) the Conversion Amount specified in the relevant Conversion Notice;
minus
(ii) the Realized Amount, as evidenced by a reconciliation statement from the Holder (a “ Sale Reconciliation”) showing the Realized Amount from the sale of the Conversion Shares;
divided by
(iii) the average volume weighted average price of the Company’ s Common Stock during the five (5) Business Days immediately prior to the date upon which the Holder delivers notice (the “ Make-Whole Notice ”) to the Company that such additional shares are requested by the Holder (the “ Make-Whole Stock Price”) (such number of additional shares to be issued, the “ Make-Whole Shares ”).

So, if the PVSP share price happens to fall more than 15% which would cause TCA to make less money than anticipated, Pervasip would issues extra shares to TCA to make up for it.

Which make a mockery of the "15%" discount. The effective discount is much greater when the PVSP sp collapses during the dumpage.

That's the PVSP we love. Borrowing its way to prosperity with the friendly neighborhood Shylock.