~ ASHER ~

[Cassandra]

It depends on the loan agreement or the conversion agreement if the debt is sold to an entity other than the lender. In some cases the lender or the buyer of the debt will accept a certain number of shares in exchange for the entire debt all at once, usually priced at about 50% of the market price.

In other cases a debt is sold in tranches, allowing the entity receiving conversion shares shares to sell the first tranche before accepting or pricing the next and so on until the debt is paid. Again, conversion shares are usually issued at about 50% of market.

Both methods are toxic, but the second method is a spiraling toxic conversion as the sale of a tranche often depresses the market price so each subsequent tranche is priced even lower than the former.