NightCulture Inc (fka NGHTD)

[otcbargains]

He is right though about the potential dilution if they don't pay it off. The conversion would happen at 50% of the average closing price over the last 20 days. As an example if they submitted it right now for conversion then there would be substantial dilution. About 28 million shares worth. The ceo and the other insider own 60% of the shares so I doubt they want that to happen. It would be much better for them to pay the 421K. I think they have it and for all we know it has already been paid off.

Here is the kicker though. The last time the lender converted shares they dialed up a promo and this saw a big run. I am not worried about it either way. I would prefer they pay it off but if they don't the lender will want to make a killing on the conversion and will likely dial up another promo.