Replies to post #14939 on DigitalTown, Inc. (DGTW)

[trader59]

That isn’t what the term sheet says, they aren’t buying $5M of stock at a penny. What it really says is if the PPS is above $0.01, the toxic lender is obligated to buy some discounted, immediately dumpable stock. If it is below $0.01 (like now), they are not obligated, but may anyway if the latest pump has provided enough liquidity for them to dump the stock and make their profit.

The price of the stock to that toxic lender is a discount to the current PPS.