i can understand how you might think that but unfortunately that is most likely a misunderstanding on your part. imo it will be proven that the convertible notes and convertible preferred shares are all immune from dilutive action such as a reverse split or an increase in authorized share capital. essentially, conversions into common stock are done and sold into the market immediately... but the convertible basis, be they preferred shares or debt, remain intact and convertible at a later date. when a 'floor' of .031 is set... what happens if the company dumps 100 million shares, or more, and then executes a 100:1 r/s, or more, and thereby wipes out 99% of common shareholder value? well, this could simutaneously re-establish the price above the .031 'conversion floor' for the preferred shares and convertible notes and the holders can just continue to convert and sell into volume when it comes. sorry to be such a downer but that is exactly what i see happenning here in my opinion. dont get me wrong though - this can be a good trade when it pops but to hold long term is a losing bet imo.
all my posts are my opinion only.
