"Converts into EQUITY." That's precisely what Blackbridge Capital did... converted their debt into deeply discounted shares (@ .0001) and dumped them onto the market. These toxic financiers know they can make many MANY times more than the principal amount of their loan by doing this!
Imo HWAL can't simply just pay them off with $42,500 + interest even if they had it. These lenders are entitled to shares at whatever deeply discounted deal HWAL agreed to. With the A/S maxed out about all that's left is for the company to print more shares. They can do this any time they like. That is unless these shares are sitting in the restricted group. Either way it seems a ton of shares are set to bomb the market.