Replies to post #11224 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I tend to think that it the money was borrowed to pay Benny back for company financing (early on). These were Benny's personal shares used for the loan, not the companies.

This was off-book financing that they are happy to get rid of. If the share price were down more, it would have cost more shares (shares were to be valued at 60% of the lowest price in the preceding 10 days). I think they let the event trigger.

I think Benny was trying to get the share price up with his buying habits (100 and 1,000 share lots) and used the shareholder video to help the price stay up.

Having said all that, 35 million added into 500 million shares outstanding isn't that bad. It's the rest of the convertible debt that you should be worried about.