Hong must have been truly desperate, I mean, TRULY DESPERATE! he pledged the entire company for this loan, all of the IP and every asset we own. why wouldn't the lender simply short the stock into a delisting and take the whole thing? seriously. hong was obviously way behind to silicon and i can't blame him for keeping the ship afloat, but, i smell vulture capital here and i hate to say it, but, these vultures can steal this company in as little as 30days if hong can't keep the pps up and by the look of the close, we might be in trouble.
11% interest rate at this market? wow! companies are getting 4-5% loans and THAT is considered high. prepayment penalties? i thought those were outlawed. restrictions on mergers..there goes the buyout hopes. these guys do not want a merger because they want the IP AND, they will pay less than 10 million to get it all. i was happy until i read the 8-K , then, my heart sank. hong probably had no choice, so he took what he could get.
i think we tank tomorrow and i think the lenders are the ones that will short it. i hope i am wrong, but, we will see.