InvestorsHub Logo
icon url

Toxic Avenger

11/24/10 2:08 PM

#1992 RE: buyittradeit #1991

Good luck and you have a big gain today, but I think the next round of financing will be very difficult to get and, if they can pull it off, very expensive to existing shareholders.
Not only do they have the large losses and declining sales to deal with, they have the CDS loan secured by all the company's assets, and it seems likely that without additional funding they will likely default on that loan. Meanwhile, anyone providing funds will be paying that loan off to CDS. Potentially, I fear some sort of "death spiral" financing.
All MHO.