PHOT pledged ALL company assets for just one financing deal. Obviously they have warned that being in default on notes risks having all PHOT assets foreclosed upon.
Who is the bonehead at the company that risked the entire company to get some cash for the payroll/high salaries and to offset losses?
Now that they have been forced to renegotiate financing in default, they are in a bad position to get a good deal on this toxic financing.
As the share price drops, even more shares are needed to be issued. This puts pressure on the share price, which drives it lower. Now the lower prices mean even more shares need to be issued for that same $ of financing. Rinse and repeat. Toxic deathspiral financing at its best.
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