Botanist wrote: A serious question every holder should consider.
How are we going to pay the $13m debenture debt due in 40 days?
They convert at $1.45, our share price 8c so they will not convert.
These holders are ruthless, their purpose in life is to make money.
Our market capitalization is $9m, no way someone will loan us $13m
To raise $13m if we could, would be at a massive discount, say 6c or 216m shares
What are the debenture holders options if we default?
i) roll them over - why would they?
law suits, negative cash flow, massive dilution, rhetoric but no results
and at what convertible price? 4c? that's an additional 325 million new shares!!!
ii) liquidate our company, our assets are worth far more than the $13m debt, shareholders will get the scraps after lawyers.
This is a very serious issue George needs to address, laying off staff, trying to raise $1m, going MIA, does nothing to solve this issue.
Buying Digigro for 33% of our shares on issue just shows George is desperate, has no concept of dilution, and seems oblivious to what's happening arround him. I sincerely hope he pulls a rabbit out of the hat. Unfortunately prior to his 4 years in the cannabis space, he had a sheltered life in the military, no corporate experience. He is a convincing salesman, gift of the gab, unfortunately I've come to realise it's all rhetoric.
Look forward to some constructive comments as to how we are going to resolve this very serious problem.