RE:RE:Wonferdul News to Begin the Week WithExitStageLeft wrote: You are wrong. This is a hail mary move. The coupon rate is 13%. that is junk status interest rate. Once this money runs out, they will need more untill the losses are so great that the lenders take over the company. This is the ultimate goal. Because this debt is senior, no other lender will ever lend them money again.
The move to spread themselves out so thin was misguided.
Remember, that because of law 280e, the interest expense is not tax deductible. Actually, all operating expenses are not tax deductble. So, even though they lose money, they are generating taxable income and actually have to pay taxes on gross profit.
Now, with tax loss selling about to hit, I think the shares continue to fall.
It is an Aaron Rogers Hail Mary. Were all good Rogers always converts.