No, the "future lien holders" are writing debt for guaranteed stock conversion.
All the debt is convertible at any time now (the 90 at a price based on the current average PPS. That makes the convertible debt and notes absolutely guaranteed to "the people paying for them."
Conversion is happening now and will continue. That's how this company is funded. That's not necessarily bad -- the alternative is much worse -- but there are no white knights or angel investors funding this company because they are confident about future cash flows.
CFDA clearance is just as difficult as FDA clearance. It may never happen. And Turkey has been a brass ring for years. ITEM might pay $1.1 million in 2018 and they might not pay anything, because it's just a licensing agreement, not an actual debt.
Will any of it happen? possibly, but there is certainly no guarantee -- far from it -- so the lenders are converting their debt and cashing out for a nice payday. 58% of the average PPS is a sweet price.
It's just the reality of the thing. If the "new note holders" weren't converting their debt, the company wouldn't have issued 30 million shares in the past four months. This is how the rich get richer -- they buy convertible debt and convert it and they lend money at 12% interest.
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