YA converted at approx. .0005 cost to them. If they sold the first tranche, they took a loss.. Now there are probably a dozen or more CD holders each capable of converting up to 4.99% without having to file.
The activity the past week is a culmination of ALL CD holders with capacity to convert.
Why are they all converting??? The delivery of shares is typically 3 days after conversion..
I would venture a high probability that they ALL have been given a right of first refusal on some financing or capital raise deal. They know they will be repaid cash but also want an equity position. No reason to want an equity position otherwise.
In this process, some shares are sold, some are held, but right there at .0002, .0003, .0004, .0005 was about 2-2.5 billion shares ready to be absorbed with approx. 700k in cash.
What penny stock has that much cash ready on bid at these levels???
The capital infusion is likely to be handled with preferred shares which could guarantee the new buyers a % of the company whether there is 2 billion or 10 billion outstanding. This in part could explain the complete disregard for share structure, as the company gets what it can and pays the rest back with cash from capital raise.
The company can RM with another entity and have debt cleared and cash to implement plans on multiple fronts.
New buyers
New management
Capital infusion eliminates debt
RM possibility
Large sponsor for multiple INDs.
This can easily get to 50-100 million market valuation...
Will there be 5, 10, 20, 30 billion shares to divvy up for this valuation? Who knows...
If the company has cash they could always force prices by supporting bid...
