How could SFOR get a non-toxic loan and does the l
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Posted On: 09/03/2017 11:01:34 PM
How could SFOR get a non-toxic loan and does the loan have a message to investors without actually saying it?
Here it is from the latest fins:
Note 10 – Subsequent Events
"In July 2017, the Company issued a convertible note payable for $175,000, bearing interest at 10% per annum, and maturing in July 2018. At the option of the holder, beginning seven months from the date issued, the note is convertible into shares of common stock of the Company at a price per share discount of 42% of the lowest closing market price of the Company’s common stock for the twenty days preceding a conversion notice. The Company determined that the conversion feature of the note was not fixed, and will record the fair value of the conversion feature of approximately $190,000 as a derivative liability."
My opinion is 2 fold (certainly loaded with info) and please correct me if anyone disagrees:
1) What lender would actually stick their neck out under these terms for a pink sheet ticker? Most lenders go for toxic lending if there is too much risk. The company is losing money but there must be something around the corner. A lender has the right to insider info. that can't be disclosed publicly to determine the risk and the terms and conditions of the loan. The loan appears to be to hold SFOR over until the new investors close the deal with SFOR by the end of Sept. So this lender must know about deals and/or settlement negotiations. 10% with no conversion rights in the 1st. seven months means low risk LOAN. IMO.
2) SFOR can pay (my interpretation of the paragraph above, I do not have any more details of the loan terms and conditions) this loan off for a reasonable 10% (non toxic) if they do it before Feb. 2018 (within 7 months). The lender can not convert until after 7 months have gone by. So if SFOR gets major deals done and/or settlement money and/or money from the $9milly (due by 9/2020) before Feb.2018, the loan will only cost 10%.
The way this loan was written plays along with what Kay has been saying about major deals during the 2nd half of 2017. Kay has the opportunity to pay this note off without hurting shareholders if one of these catalysts come to fruition. But even converted shouldn't hurt shareholders.
ONE THING NO ONE CAN DENY IS THAT SFOR IS PUSHING HARD TO GET MANY THINGS DONE.
LOOKING FOR ALOT OF ACTION OVER THE NEXT TWO TO THREE MONTHS.
IMO
Here it is from the latest fins:
Note 10 – Subsequent Events
"In July 2017, the Company issued a convertible note payable for $175,000, bearing interest at 10% per annum, and maturing in July 2018. At the option of the holder, beginning seven months from the date issued, the note is convertible into shares of common stock of the Company at a price per share discount of 42% of the lowest closing market price of the Company’s common stock for the twenty days preceding a conversion notice. The Company determined that the conversion feature of the note was not fixed, and will record the fair value of the conversion feature of approximately $190,000 as a derivative liability."
My opinion is 2 fold (certainly loaded with info) and please correct me if anyone disagrees:
1) What lender would actually stick their neck out under these terms for a pink sheet ticker? Most lenders go for toxic lending if there is too much risk. The company is losing money but there must be something around the corner. A lender has the right to insider info. that can't be disclosed publicly to determine the risk and the terms and conditions of the loan. The loan appears to be to hold SFOR over until the new investors close the deal with SFOR by the end of Sept. So this lender must know about deals and/or settlement negotiations. 10% with no conversion rights in the 1st. seven months means low risk LOAN. IMO.
2) SFOR can pay (my interpretation of the paragraph above, I do not have any more details of the loan terms and conditions) this loan off for a reasonable 10% (non toxic) if they do it before Feb. 2018 (within 7 months). The lender can not convert until after 7 months have gone by. So if SFOR gets major deals done and/or settlement money and/or money from the $9milly (due by 9/2020) before Feb.2018, the loan will only cost 10%.
The way this loan was written plays along with what Kay has been saying about major deals during the 2nd half of 2017. Kay has the opportunity to pay this note off without hurting shareholders if one of these catalysts come to fruition. But even converted shouldn't hurt shareholders.
ONE THING NO ONE CAN DENY IS THAT SFOR IS PUSHING HARD TO GET MANY THINGS DONE.
LOOKING FOR ALOT OF ACTION OVER THE NEXT TWO TO THREE MONTHS.
IMO
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