Replies to post #44602 on High Wire Networks Inc (HWNI)

[drugmanrx]

Fact vs made up stuff

Fact

Beg to differ, but actual legitimate developmental stage companies in the real world shows your wrong. Developmental companies where the founders want to keep control of their companies convertible debenture is a very common type of funding.

Sure small companies have avenues to other forms of funding if the founders and early shareholders are willing to give up a large percentage of their investments. Going this other route usually has the effect of diluting early shareholders completely out of any rewards from the companies future successes. Convertible debenture is commonly used as a bridge gap until other forms of funding can be secured.

Convertible funding is risky if no other funding is obtained and may lead to toxic funding if mismanaged. So far, after eight years of operation after achieving so much with so little with only 73 million shares out standing there is little indication of financial mismanagement here.



Made up stuff

Actually legitimate companies dont engage in death-spiral financing. A real board of directors would never allow it. The companies that go down this road end up in the pennyland graveyard.

And the companies that take it on are usually the ones trying to sell hope rather than reality.