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junkHustler

06/07/17 8:57 AM

#64166 RE: sps50 #64164

Toxic financing is debt equity paid by shares that have a discounted value to current market pricing; and is based on lowest price over a preceding timeframe.

It means the lower the pps falls the more shares are needed to be doled out to cover the debt which ends up putting more downward pressure on the pps which again exacerbates the amount of shares required to repay debt... see the vicious cycle?

Also called death spiral financing.

GLTA & JMO