Sturgis-
Although I always respect your opinions and insights, I respectfully disagree with the plan being a sound and effective check mate by allowing toxic debt holders to clear their debts in the equity market. That misses the mark by a huge margin and it's something I sincerely hope Mr Remillard is not willingly considering as a part of his plan to move this forward.
Toxic dilution destroys shareholder equity and it erodes shareholder faith. If people believe the CEO is willingly pimping out his equity and undercutting his current shareholders for fractions of what his shareholders are buying the shares on the open market for, then ATDS will be known as a share selling scam. (Believe me, there are plenty who believe this already. We know who you are). Jason and crew have had every opportunity to prove them wrong. The next few month will be important for Jason to execute in and to change the perception of this company and it's stock.
Roughly 2.5 million dollars is what is owed. For a cyber security company in one of the hottest industries, this should not be an issue for Jason to refinance. (Look at what his competitors are getting). The fact that he would go the route of allowing debt holders to convert without securing some sort of funding or refinance to roll it down the line, in my opinion would be an epic failure on the part of Steven Dawson who was brought in to do just such a thing.
I'm all for averaging down and buying equity for cheap, but that game only plays for so long. Lower prices, brings more dilution, which brings lower prices, which brings more dilution. A vicious cycle that Jason would be smart to avoid. He should look no further than IRNC to see the detriments of allowing debts holders to destroy your equity...
If Jason and the ATDS peeps want to make this an easier road, they need to show that their equity is worth more than dirt, that their company can execute when it needs to most and that they are committed to driving shareholder value here. Allowing toxic debt holders to tee off on this will do none of what I have listed. Jason will continue to be seen as a joke and the continued faith people have in him will erode away just as fast as the stock price going down the tubes.
One other thing.... If Jason's end goal was to bring in cheap shares and erase debt, then why did he go get the first debt extensions back in June 2019? He could have jump started that plan by allowing them all to convert back then. More than likely would have had a lower stock price right now but "no debts" as he heads into 2020. So why didn't he allow them to convert back then?
Anyways, he has an opportunity here. Hopefully he chooses the right way to go. This could go north in a hurry with a proper solution in place.
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