lowtrade

[jprise]

Good morning sir. I have a question I hope you may be able to help me with. Is the 9.99% ownership restriction, that is seen on a lot of share conversion filings, a sec regulation across the board or simply standard practice for toxic financing agreements? Would it apply in regards to a merger between companies if the parent company is obligated to issue a set dollar amount in shares? Say There is no 9.99% clause in the filing of the agreement. The agreement is 80% VWAP of the lowest five previous trading days. A company is to get $10 mill in converted shares on a certain date and between the time of the agreement and the maturity date the share price drops significantly. The result would be an almost 50% stake in the parent company. Would they be required to convert and sell the shares a portion at a time on the 10% basis or could they convert everything and hold that 50% stake in the o/s? Thank you for your time, best of luck to you sir.