

SUNRISE, Fla., Sept. 12, 2018 (GLOBE NEWSWIRE) — Profile Solutions, Inc. (OTC Pink: PSIQ) is pleased to announce the company is without toxic debt and there will be no reverse stock split of PSIQ common stock in the foreseeable future.
Dan Oran, CEO of PSIQ stated, “I am pleased to announce PSIQ does not have any toxic debt and has no intention of accepting toxic debt financing. Our focus is to increase Revenues, Profitability and enhance shareholder value for all PSIQ Shareholders.”
What is a Toxic Debt?
Toxic financing is convertible debt or preferred stock that allows the financier, the holder of the debt or preferred shares, to essentially receive an unlimited number of free trading common shares when they convert their debt or preferred shares to common stock. The debt or preferred shares carry an interest or dividend rate that the company is usually unable to pay; and as a result, the financier converts the shares into common shares that they then sell into the market in order to be repaid and earn a profit on the investment. The formula for the conversion into common shares is structured so that there is no downside limit on the price received for the converted shares. This is what is known as a “floorless convertible” and this is what makes the financing or funding toxic.