Suggest you missed a couple of key words in the announcement. This bit says it all: "and acquire approximately $13,000,000 of the Company’s existing secured convertible notes". The words "existing" is pretty important to the context of what they are telling us.
Its also deliberately avoiding the obvious. As the notes are existing this is really just saying that a the larest notes holder refused to extend for more than an extra few months and the company has been working with that holder to find a buyer so that they could walk away. Previously some speculated that the very short extension might be because a big sale was just around the corner and this might be all the time they needed. Reality seems to be otherwise. Still, we don't need to know how much of a haircut the current holder took on their notes, just that the new one is offering a decent extension and other concessions.
MST Price at posting:
0.4¢ Sentiment: None Disclosure: Held
