Replies to post #59730 on Fuse Science Inc (DROP)

[war eagle]

My interpretation: the subsequent financing of no less than 4 M is secured by the assets of the company but not the 700k. I think you misinterpreted the 8k.

[Long-vestor]

Yeah but you missed and update last month, IR claimed the burn rate was down to $125k a month,, which obviously is a difference,, still not in the green but definitely huge in comparison to that 1.2 mil average burn.

As for the note,, there are hints of what's to come of that.. just gotta dig into the papers.

[StockdungU]

The indebtedness evidenced by the Notes bears interest at 10% per year, and accrues and is payable together with principal on the 60th day after Closing. The Notes may be converted, at the option of the holder, (i) into the Company’s common stock, at any time following issuance at an exercise price of $0.065 per share (subject to adjustment as provided in the Note) or (ii) if the Company consummates a subsequent financing generating gross proceeds of not less than $4,000,000 (a “Subsequent Financing”), into the securities sold in the Subsequent Financing at a specified discount from the offering price of such securities. The Notes are secured by a first lien on substantially all of Fuse’s assets pursuant to a pledge and security agreement (the “Security Agreement”) among the parties.

[wannabeeinhorn]

Thank you Tontis for your take on this deal.

PS. No position.

[Tontis_Acheater]

Here is the copy of my initial post on this board on the Friday of the press release regarding the $700K note.

Now remember all you were cheering what great news this was on the Friday after the market closed and all were stating how many shares they were going to buy on Monday.

The stock closed at $.039 on that Friday before the press release was published after the close. All of you cheered over the weekend and couldn't wait to buy more shares.

On Monday the stock opened higher and immediately ran to $.054 and was up a 38% the first hour when you all claim to have buying. The stock immediately reversed course and ran down to $.022 over the next 72 hours.

I can repost several of your posts from that Friday, Saturday and Sunday but you all know what you wrote.

Now my prescient post within the hour of the release on that Friday.

Tontis_Acheater Friday, 11/08/13 06:48:05 PM
Re: None

Post # of 65404


Hate to burst the bulls bubble but this was a debtor in possession loan. A $700K investment due in 60 days secured by essentially all Fuse Science assets. This is how bankrupt companies who are running out of cash access operating capital and transfer assets to a third party.

Simple financials show Fuse is losing more than $10 for every $1 in revenue. In simple terms, Fuse is losing $1.2 in cash every month on $100K in revenue. Balance sheet shows $300k as of last quarter so you see Fuse was out of cash.

This is horrible news for existing shareholders and just a signal that Fuse assets are heading out the door within 60 days. If the $700K note + interest is not paid back in full in 60 days, the investors are entitled to foreclose on essentially all Fuse Science assets. Game over for equity holders.

[Tontis_Acheater]

How prescient....I shared the facts with everyone nearly 2 months ago when the stock was trading at $.055. The message below was posted within an hour or two of the press release. I have since provided accurate and detailed information on the transaction, circumstances and the principals.

Tontis_Acheater Friday, 11/08/13 06:48:05 PM
Re: None

Post # of 67051


Hate to burst the bulls bubble but this was a debtor in possession loan. A $700K investment due in 60 days secured by essentially all Fuse Science assets. This is how bankrupt companies who are running out of cash access operating capital and transfer assets to a third party.

Simple financials show Fuse is losing more than $10 for every $1 in revenue. In simple terms, Fuse is losing $1.2m in cash every month on $100K in revenue. Balance sheet shows $300k as of last quarter so you see Fuse was out of cash.

This is horrible news for existing shareholders and just a signal that Fuse assets are heading out the door within 60 days. If the $700K note + interest is not paid back in full in 60 days, the investors are entitled to foreclose on essentially all Fuse Science assets. Game over for equity holders.

[Chag]

This was your very first post on this board 11/8/2013. 60 days is not far away. Just wanted you to remember what was said and predicted to happen to Fuse. Happy New Years! 2014 will be Great for us Fuse investors!

Hate to burst the bulls bubble but this was a debtor in possession loan. A $700K investment due in 60 days secured by essentially all Fuse Science assets. This is how bankrupt companies who are running out of cash access operating capital and transfer assets to a third party.

Simple financials show Fuse is losing more than $10 for every $1 in revenue. In simple terms, Fuse is losing $1.2 in cash every month on $100K in revenue. Balance sheet shows $300k as of last quarter so you see Fuse was out of cash.

This is horrible news for existing shareholders and just a signal that Fuse assets are heading out the door within 60 days. If the $700K note + interest is not paid back in full in 60 days, the investors are entitled to foreclose on essentially all Fuse Science assets. Game over for equity holders.