Sio- I agree - follow the money. Concern that I
Post# of 56324
Posted On: 01/18/2015 9:00:02 AM
Re: SIObserver #47056
Sio-
I agree - follow the money. Concern that I have is that the biggest money associated with FITX (private investor) has restructured their deal. We're now on the hook for 12% interest on ~$9M - meaning $1M/year in interest alone against a company that currently has no revenue. I can only assume that this conversion was written into the initial agreement initially with FITX. Otherwise, why would FITX allow for the restructuring now - that investor would be down 60-70% and have to accept that as many on this message board are currently positioned.
Many on this board have made comments over the last 8 months along the lines of "how can it be a bad investment if someone was willing to devote $20M to the company"...Well that institution/investor is now more comfortable with a guaranteed 12% as opposed to the opportunity that FITX can provide. And the comments now? People are happy that we own 100% of the company. A positive result in either development? Apparently some people are ever the optimist.
Yes, I've been invested in FITX over the last 11 months and had continued to invest from then to the .03's but have stopped accumulating at that point. I'm not going anywhere with my holdings, but I'm becoming increasingly concerned regarding the revenue/debt ratio (I'm also a bit disappointed that Hemp Tech revenue is near nothing) that will only worsen until license is issued, with the only offset being further dilution by converting A/S to O/S.
I'm interested in anyone's feedback regarding the near term financial standing and where my current perspective may be inaccurate.
Regards,
-kbulldog.
I agree - follow the money. Concern that I have is that the biggest money associated with FITX (private investor) has restructured their deal. We're now on the hook for 12% interest on ~$9M - meaning $1M/year in interest alone against a company that currently has no revenue. I can only assume that this conversion was written into the initial agreement initially with FITX. Otherwise, why would FITX allow for the restructuring now - that investor would be down 60-70% and have to accept that as many on this message board are currently positioned.
Many on this board have made comments over the last 8 months along the lines of "how can it be a bad investment if someone was willing to devote $20M to the company"...Well that institution/investor is now more comfortable with a guaranteed 12% as opposed to the opportunity that FITX can provide. And the comments now? People are happy that we own 100% of the company. A positive result in either development? Apparently some people are ever the optimist.
Yes, I've been invested in FITX over the last 11 months and had continued to invest from then to the .03's but have stopped accumulating at that point. I'm not going anywhere with my holdings, but I'm becoming increasingly concerned regarding the revenue/debt ratio (I'm also a bit disappointed that Hemp Tech revenue is near nothing) that will only worsen until license is issued, with the only offset being further dilution by converting A/S to O/S.
I'm interested in anyone's feedback regarding the near term financial standing and where my current perspective may be inaccurate.
Regards,
-kbulldog.
(0)
(0)