Replies to post #44747 on Secure Point Technologies Inc (fka IMSCQ)

[tedpeele]

You seem pretty knowledgeable ,int10a, so maybe you can answer this question: Why are terms of the L3 deal fuzzy? Why did they refer to paying certain liabilities without saying what those are? I can't think of a good reason other than a desire to not let shareholders know what they already know.

[ken_r]

It wouldn't be coercion if PP simply said "You can give us the options at $0.19 OR find someone else, anyone else crazy enough to take the risks attached to trusting your company with $7 million. Too bad none of the C.C.s spelled out how tentative our future was.
On the other hand, arguing against my own interests, maybe management thought a reasonable investor would surmise that the outlandish loan terms we accepted were all a "cautious" investor needed, by way of red flags.