Replies to post #32198 on Players Network Inc. (fka PNTV)

[Hawkeiz]

Did you buy all you could afford you said the other day you were going to do that I was just wondering if you got the opportunity I sure hope so because this is going to head north soon

[lesgetrich]

it is a toxic debt at its finest. Please understand the filing not the summary.

I took my info directly from the filing not the summary.

I think you have a problem understanding toxic debt. The technical definition of a toxic loan involves a bad debt for the lender. However, as used in connection with OTC stocks, it generally refers to a situation where a company takes out a loan in exchange for a significant number of shares of its stock that are priced or discounted at a pps below the current share price. This leads to a situation where the pps will go into a downward spiral when the loan shares are converted and sold. Three conditions should be satisfied for it to be considered toxic.

1.) The offering price of the shares must be considerably lower than the current share price with little to no likelihood that the loan could be repaid and cancelled before the conversion can be exercised or that the underlying value of the shares will significantly increase.

2.) It has to involve a significant percentage of the outstanding shares that can be exercised within a short period of time. For example, one million shares becoming available for sale when a company has an OS of 500 million shares with an average daily volume of 6 million shares would unlikely have much lasting impact on the pps.

3.) The lender is primarily interested in a quick return on the loan as opposed to a long term investment or partnership with the company to which they are lending. In other words, does the lender have an incentive to hold onto the shares they get after any sale restrictions are removed.

The loan to Kodiak doesn't seem to meet any of these criteria.