At the early stage of a start-up company, funding by convertible...

At the early stage of a start-up company, funding by convertible notes is usually a dead-kiss. I believe that the company misjudged their ability to pump funds from the market. The performance of these days share prices arose from this reluctantly funding arrangements.We can carefully read the terms of convertible notes :’Notes can initially be converted at 130% of the 5-day VWAP prior to issuance of the applicable tranche. From 65 days following the date of issue, the Notes can be converted at the lower of 130% of the 5-day VWAP prior to issuance of the applicable tranche and 90% of the lowest daily VWAP during the 15 trading days preceeding the conversion date. Other than with the prior written consent of the Company, in any calendar month, the Investor may not convert more than one third of the Notes issued on a purchase date at 90% of the lowest daily VWAP during the 15 trading days preceeding the conversion date. ‘

As all the convertible price is to great extent anchored at the 90% of lowest VWAP, and the first tranche matures in 3 months after issuance and convertibility is not available in 65 days.That announced to the market on 08/02/2019. If i take all the background together, I got the impression that the knockdown of share price is not coincidental. To be honest, if I am the holder of convertible note holder, it is in my greatest interest to keep price as low as possible.

I hold very small amount of shares because I am interested in the technology. But I will watch it carefully in sideway Until their new funding arrangements and convertible notes debacles dust.

sentiment should be hold