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Sleepy2016

01/22/16 5:21 PM

#39665 RE: Mkrak23 #39662

If it goes that low, you can just buy the float for close to nothing.

Not really. If it did drop that low then that would mean that hundreds of millions of new shares would have been issued by then and hundreds of millions more shares would have to be issued to satisfy the terms for the conversions. The AS would have to be increased well into the billions.

Again, that is how toxic financing works and why it's so bad. Unfortunately, with zero revenue not even expected for several more months they have no choice but to sign on for even more convertible notes.

surfkast

01/22/16 5:40 PM

#39667 RE: Mkrak23 #39662

Here is a great explanation on how toxic debt works. Thy can convert well below .0001.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=119998078