Replies to post #15593 on ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

My opinion id CEO should by out the toxic notes to move up share price. That wold take care of the resistance. Stock is obviously being flooded at end of day by shorts that must somehow be tied into their holdings of their notes which must be creating more paper. I say take these notes out

@Alleyba1,

We all want the notes to be paid down at maturity (NOT before as these toxic notes all have severe pre-payment penalties) rather than letting them convert. And I'm sure the CEO wants to as well. But the truth of the matter is that he can't. There is insufficient cash. Major red flags went up a few months ago when the Ironridge deal was announced -- remember, this deal was essentially SCRC engaging Ironridge to pay off all of SCRC's normal trade and other accounts payable because SCRC literally did not have enough cash on hand to even keep the lights on.

Your point re: shorting is also relevant. I made some points in an earlier post about the toxic financiers having the financial motivation to possibly short the stock using the shares given to them as collateral by SCRC as part of the terms of the notes, based upon the number of shares they can convert being tied to the lowest prints or lowest EOD prices in the 10 days leading up to maturity.

As I mentioned in the post that I have stickied, SCRC's path to success will involve several steps, and the first step is to generate as much revenues as possible as quickly as possible so that SCRC can at least be self-sustaining and can wean itself off of needing to enter into any NEW convert notes. Once the floodgates have been shut to prevent any further new notes, the cash flow from the increased revenues can then be diverted to paydown existing notes when they mature so that they never convert to dilutive shares. It'll take a while, though, but it's absolutely do-able...