Friendable Inc. (OTCMKTS:FDBL) Issues Even More Convertibles

You know how we always warn investors to keep an eye out for convertible debt, because the issuance of cheap stock threatens investor value? Well, Friendable Inc. (OTCMKTS:FDBL) just issued another one of those damnable notes.

It seems like FDBL‘s management is content with playing the same old drama over and over again. A little over a month ago, it printed a particularly nasty convertible note, which had the provision to transform from $61 thousand worth of debt into stock at a rate of “50% of the lowest closing bid price (subject to a $0.004 ceiling price) for the common stock during the twenty (20) consecutive trading days immediately preceding the conversion date”.

Yesterday, it became clear that the company has printed another, essentially identical note for another $50 thousand, only this one also included the provision that the holder can’t beneficially own more than 9.9% of FDBL‘s common stock outstanding.

Investors should really pay attention to such documents, as they are an important indicator of exactly what kind of company FDBL is, as well as what sort of pitfalls one needs to watch out for when committing to FDBL stock.

Because, while it is true that celebrity endorsement keeps raining down on FDBL in recent days, there is currently no real way to know what effect that sort of thing has on the company’s actual financial standing.

True, receiving product placement in a Fifth Harmony Music Video can’t be bad for business – but is it a good enough turn of events, as far as investor value is concerned, to balance out all the company’s current dubious activities?

As usual, it is up to investors to decide that on their own, and as usual we urge investors to be cautious and diligent when making that decision.