DSTI will be selling 1,000,000 shares next week to pay debts
So they sold about 400,000+ shares from Dec.11 - 14 to make the $1.88 Million and $0.5 million = $2.35 million principal+interest payments. That was at a price of $4.30. To make the same monthly payment now at a price of $2.63 (or $2.35 soon), they would have to flood the market with 1,000,000 new shares. What are the chances of default? Daystar could continue issuing and selling shares or make headlines by saying - we're bankrupt and we can't pay our creditors. If they sell 1,000,000 shares next week, PPS will be under $2 .... maybe $1.30-$1.50
I bet the creditors who got those 400,000 shares at $4.50 turned around and sold it immediately. If not, they would be selling it now at $2.60 OUCH. If I were the creditor loaning money to DSTI, once I get hold of their shares - I will sell it for cash.