The company is now trapped in a toxic death cycle. Once a company signs a toxic financing agreement like the type that Asher Enterprises Inc offers there is usually no escaping the inevitable toxic death cycle after that. The outstanding share count will continue to go up and the share price will continue to go down.
Learn to read filings and recognize toxic financing agreements. Look for convertible debt Notes and look at the terms of those Notes. Not all penny stocks are fully reporting. For non-reporting companies there is usually no way to know if the company is involved in a toxic financing arrangement. This is one of the reasons that non-reporting companies are so risky. You never know when dilution is going to be a major factor in destroying the share price.
Not every toxic Note holder has an easily recognizable name like Asher Enterprises Inc or Lionheart Associates LLC or JMJ Financial or Tangiers Investors LP or NIR Group. Sometimes it is the insiders of the company (former officers/directors, current officers/directors, friends and relatives of former or current officers/directors, etc) that set up toxic convertible debt Notes for their own self enrichment.
Convertible debt Note show up in a company filing ????? you better be well aware of when the Note holder received that debt Note and when that Note can start being converted into discounted free trading shares. All convertible debt Notes are red flags for future dilution.
Hopefully some of the changes that come out of the recent SEC Roundtable on the Execution, Clearance and Settlement of Microcap Securities will help curve these self enrichment scams that involve insider owned Toxic debt Notes and also prevent the market manipulation that so often comes with all Toxic financing agreements like the ones offered by Asher Enterprises Inc.
i did not write this, here is where i got this from:
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