All they to do is make the closing price work. They need the last trade be at their targeted price. At .0003 the conversion price is $.00024. If they buy at the conversion price and sell at .0004 they make a very nice return on top of the interest on the note. The 20% conversion discount at these prices is worth an additional ~80m shares to a holder of a $100K toxic note.
I have seen toxic holders do this in other stocks. I am sure Fife and the others know how to play this game.
We would know the answer as to whether this is happening with the toxic debt if they ever issued anther 10K or 10Q
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