qreader: Bottom line is Debt is paid off & it appears that with all the revenue expected in 10Q coming due approx May 15th things are looking on the UP!
It is also expected with the CEO of twitter on the board and russia expansion and so much more additional PR coming in the near future it is a receipie for massive growth IMO.
I believe that exchanging these shares to pay-off the debt is considered a good thing. Less overhead, more potential for profits = stronger share price. When looking at the fact that as of APRIL 3rd revenues are expected to be higher when compared to the entire last year that is a HUGE positive. Also the fact that operating expenses have been reduced, it is setting up nicely, exchanging these shares to payoff debt will reduce future overhead even further. Thus allowing more cashflow for future needs of the company and expansion.
Again I do not believe that Kay would create dilusion if there was no benefit, thus paying-off debt is a good thing, and would balance out in the favor of the shareholders and people of interest.
For example: If my corporation owes you $1million and instead of having to pay you in cash I can provide you interest in the company, it allows for more recources to be provided for growth within the company. Then both you and I would now have a beneficial interest in the company. I doubt you'd agree to this unless you saw a large change of growth, therefore paying off well above the amount owed to you $1million could now be worth a bunch more in the near future!
Just IMO, but I guess you could look at it from either side of the coin! :)
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