The company has announced a reduction to its toxic convertible
note as well as a signed agreement with Primesite Developments Limited, a real estate development from England to help them list their shares on a US exchange.
Section VI reports on the current state of the toxic convertible and concludes.
As a conjecture, management may truly believe that the capital raised through a toxic convertible will be enough to save the company ("prettiest baby syndrome").
However, there seems to be no real call by shareholder groups to eliminate toxic convertible sales.
As a fixed debt, this payable no longer represents the limitless dilution and uncertain risk of a toxic convertible
debt, and the settlement gives the Company the option of satisfying the debt by either issuing stock or making cash payments.
As a result, portions of the toxic convertible
debt and more than 100 million warrants have been cancelled.
Many small companies are straddled with toxic convertible
debt, which is usually very beneficial for the debt holders, but typically works as a detriment to the common shareholder.
Goodlander, who personally holds all of the remaining outstanding shares the Company's Series A Convertible Preferred Stock, is negotiating with a Committee of outside Directors of the Company the terms under which the toxic convertible
provisions of both the Series A and Series C Convertible securities would be removed or, in the alternative, the terms on which he would agree to convert the securities at their current contract rate into common stock, subject in either instance to required regulatory and shareholder approvals, if any.
Toxic Convertible Debentures Paid Off in Full; Company is Now Positioned for Dramatic Growth
Pink Sheets: LNGT) announced today that the toxic convertible debentures that the Company previously issued to Cornell Capital Partners LP (now known as YA Global Investments) have been paid in full.
None of the securities to be issued in the private placement will have toxic convertible
3 million of toxic convertibles
from our balance sheet and puts the company in a stronger financial position.