Great find Fj. This certainly leads me to believe that something big is coming down the pipe very soon.
The debt covenant at issue prohibits the company from incurring any additional debt if, after giving effect thereto, the aggregate amount of all of the company's debt would exceed 33 per cent of the total value of its assets, as reflected on its (unaudited) consolidated balance sheet as at the last day of the immediately preceding month. As Pinetree previously disclosed in November, the company was noted in default by the trustee under the indenture because its debt-to-assets ratio on Oct. 31, 2014, was 38.8 per cent, contrary to the 33-per-cent debt maintenance covenant contained in the indenture. At the end of November, Pinetree incurred additional indebtedness of $3.3-million in the form of margin borrowings, contrary to the incurrence covenant. The borrowed funds were used for working capital purposes, including the semi-annual interest payment due on the debentures.
The company anticipates repaying the additional indebtedness prior to the calendar year-end
For Shelly to do this he has to either have a big buyer lined up ( obviously he can't sell that much into the open market with the volume we have now without destroying the share price) or he knows the ptk share price will go hight enough to reduce his debt-to-assets percentage to 33% before calendar year end.
Either that or he has gone completely nuts. I don't think that to be the case. He may be a bit eccentric but I think Shelldon is a very inteligent businessman with an unsatiable desire to be at the top of the investment world. Something is going on and it's all going to be good for POET investors.
