If I was a lender, this is certainly a big red flag and a huge negative entry on their credit report.
Anyone thinking about lending them money would think twice now. Also have to keep in mind that the first million of new money will have to be used for repaying old debt rather than building sales. Not good at all.
How did Conboy let it go this far? When half the money was used up, he should have used some to get more money. No one gives you money, when you have no money.
It doesnt have to be a death sentence but this news is not good- when your financiers of debt are saying they cant collect so the go the courts how do they resolve it?
-either a new line of credit or bank funding steps in to save the day
-redwood gets a ton of new shares and begins conversions dropping the price with tons of new shares entering the market once authorized/proxy is completed (only reason the price spiked higher to begin with is a break in conversions)
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so as investment this has some issues that need to be resolved to say the least not good when the banks had enough.. I hope a PR is issued tomorrow with a company update to shareholders
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