Posted On: 10/26/2015 10:33:52 PM
Post# of 30066
Umm, correct. They do prefer to convert and sell. You are truly at a loss.
If these investors were holding for the future, we would be on the NASDAQ and we wouldn't have had to turn to Magna. They are converting and selling. Why? Because they convert at 75% of the price. The lower they push the price down, the more shares they get.
Do your diligence. This is called a death spiral financing for a reason. Death spiral is convert and sell. Not convert and hold.
Wow.
If these investors were holding for the future, we would be on the NASDAQ and we wouldn't have had to turn to Magna. They are converting and selling. Why? Because they convert at 75% of the price. The lower they push the price down, the more shares they get.
Do your diligence. This is called a death spiral financing for a reason. Death spiral is convert and sell. Not convert and hold.
Wow.
Quote:
So they prefer to be currently converting and selling common shares for a loss in order to avoid the hassle of dealing with collecting 12% risk free interest or getting cheap shares to hold that are expected to be worth much more in the future??
Maybe I was wrong with my original assessment of thinking you had your finger on the pulse....
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