Sep. 30 at 1:25 PM
$KPLT Well, now we know what has been going on behind the scenes. Despicable but predictable!
Ever since Walsh pulled the 1:25 RS, the dudes at Midtown Madison Management (MMM) vowed to get even.
So, they contrived a last minute lending package on June 25 with an unrealistic deadline of July 30 to meet the
$61M originations requirement. Both parties (mgmt included) knew it would fail.
The purpose was so MMM and their cronies could get their shares back. That's the reason why the Market Cap never went beyond
$50M for the longest time.
Now with the newly issued shares, the MC will fall at a more realistic number of
$150M or so.
MMM and their cronies now own 2/3 of the company with the old debt of
$113M eliminated.
If you figure in a
$20 pps conversion rate,
$113M would convert to a low of 5m to a high of 10m shares (if you use a
$10M pps). Take the average of 15m and the new MC becomes a more realistic
$187M.
A fresh start with a mere
$187M could become
$1B quickly.
