RE:RE:RE:RE:RE:RE:RE:NEUTRISCI CLOSES DEBT SETTLEMENTEdcando wrote: Sorry one last thing to say on this. If you notice the legalese in todays NR , it has "shares" for the settlemt. Glen made and " units" for the smaller arms length settlement. This isn't earth shattering but it means Glen got the shares in lieu of cash but not the warrants at .05 (ie he settled his owed monies above market no warrants). Hope everyone has a great weekend. GLTUA
The news release actually explains everything very clearly, so I won't try to re-state it more clearly using my own words, because I probably can't. However, the non-arms-length party is an insider, who is identified as the CEO, I assume that's "Glen". OK, so that means at some point he leant the company some money, and now instead of a cash re-payment, he's taking shares. Likewise with the arms-length party.
So why would they do that? Well, everyone understands the concept of "something is better than nothing", right? So if the company has no cash to pay you, you may as well take the shares at 2 cents, because even if you can sell them at 1 cent, at least you got half your money back. Plus you can claim at least part of the loss on your tax return, so how much are you really down?
Against that relativley small loss, there's always the possibility that the share price goes above 2 cents, in which case you might actually come out on top.
The beauty of being the CEO of a penny-stock being traded on the Venture exchange, it's like having a personal piggy bank, every so often you can turn it upside down and give it a good shake.