Replies to post #1418 on Indoor Harvest Corp (INQD)

[RealDutch]

The problem isn't solved at all. They exchanged one toxic note for another. And where is the $600k they were supposed to receive?

Rifici got warrents for 30 cents. Usually a stock will have a very hard time rising above it, for quite a while, whether it's Rifici or someone else.

Something else is going on here. Lots of hype, lots of volume. And the default acted as a trigger or a catalyst. Chad was right about the importance of volume.

Of course there was some good news, Chad resigning as CEO, sacrificing some of his shares, but none of these things can explain the rally. The stock was simply undervalued to begin with, given revenue expectations. I posted a lot about this. The only issue I have here, is that under normal circumstances Chad wouldn't have defaulted on the loan. He would have repaid it. And the people betting on this outcome were not rewarded. Instead, they were confronted with a real problem.

Anyway, I said many times that startups are problematic. I was just hoping that Chad could prove me wrong, this one time.

[TenKay]

What started as $250K in financing has now become $204K in new convertible debt plus close to 2 million shares added to the float. And instead of going back to Rifici for more money he has gone back to Fireside for another note...on top of the one from Rifici.

There is no evidence that the advanced payment showed up from IGES (which is likely why he went to Fireside a second time) and as much as he hints at a good Q3, I suspect it won't be as good as some were hoping when he got the original notes in the first place.

All that he did was kick the can down the road for another 6 months. And I don't see anything that suggests his next six months are going to be any better than the last six...when these "contracts" were suppose to allow him to repay those original two notes.

He's on the toxic financing merry go round...and it is hard to get off.