It was announced when it happened--and discussed mostly on yahoo--this is where TKO 'borrowed' money for cash flow to get them thru August (?) or Sept (?), when revenues are supposed to start rolling in a lot faster than they have been....looking at it 20-20...maybe it was borrowed to pay for the head-hunters sevices to find a COO and EVP...and the re-organization efforts...who knows?
Its not new. This was done a little while back. Its bond with warrants that are convertable at 4.17. It is NOT dilution, warrants dont trade, they are only excerised when the stock hits that price. I am sure we all be relatively satisfied when the stock trades at 4.17.
This type of loan is a lot more favorable that issuing more shares of common stock. Loans at attractive rates with warrants that above the stock market value are the way to go.