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Re: ScubaDiver post# 41949

Wednesday, 04/16/2014 6:18:47 PM

Wednesday, April 16, 2014 6:18:47 PM

Post# of 61041
I believe it was said that the hotel would generate ~$600k net/gross can't remember. So, if that's about right, at that rate EFLN is looking at about 4 years pay back the $2 million cash assuming they don't take any income from it or use the proceeds in any other way. That's really not bad at all. It's a good long term investment assuming the hotel keeps making money.

The other $2 million is suppose to be paid in EFLN stock. Like I said before at any conversion price at or under .001 the A/S would have to be increased again significantly. $2 million at today's closing price would be another 3.3 Billion shares.

EAFN may be paid partly in Preferred A shares. I say partly because there isn't enough left to issue to cover the $2 million. The par value for these shares is .001 and are convertible into 10 common shares. Assuming these shares are bought at par value, the fully diluted conversion price into common stock is .0001. Again, that's assuming they're bought at .001. EFAN already has 445 Million Preferred A shares of the 1 Billion Authorized.

Fully diluted, EFLN would need to authorize another 10.01 Billion to satisfy the current Preferred A and B stock.

I get what you're saying. Even if the A/S was increased to satisfy the payment of the $2 million the chances of those shares reaching the market are slim. EAFN has held 445 million Preferred A shares for some time now and has yet to convert any. The debt is in friendly hands.

@OTCMondragon