The problem is that 100 million shares is only $300k at this pps. This is why the toxic debt was so bad. The loan holder can exercise the right to transfer the loan into shares at any point. I believe in the shareholder letter they alluded to the fact that that is what was happening and it is the biggest reason why they had to negotiate a way out of the toxic debt. You can bet that a lot of the 100 million was used for Royal Capital.

This is why I have harped on the fact that they don't have the financials done yet. Audited fins would have done away with the pps manipulation and the loans conversion to shares would not have been nearly as painful.

At least this is what I assume happened from what I gather from my DD.