InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,222.68
(
0.16%
)
US TECH 100
17,650.00
(
0.05%
)
Dow Jones
39,512.84
(
0.32%
)
Brent Oil
82.59
(
0.00%
)
Bitcoin
61,024.98
(
0.38%
)
Post# of 77519
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Keep Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

stockmasterflash

Send PM Follow Ignore
Followers 116
Posts 11877
Boards Moderated 1
Alias Born 03/08/2004

stockmasterflash

Re: None

Wednesday, 11/11/2015 6:05:52 AM

Wednesday, November 11, 2015 6:05:52 AM

Post# of 77519
Why does management convert their debt to shares?

they want you to believe because it is their firm conviction in the value of the company, but as I said back then, the debt (for accrued salaries and compensation) will never be paid off. It has no real world value. Converting the debt to shares enables management to effect corporate actions like reverse splits and Authorized share increases without involving rank and file shareholders.

Speaking of authorized share increase notice that no mention was made of reducing authorized shares in the reverse split. Because they aren't reducing authorized shares. They are doing a 5-1 reverse split but leaving authorized shares unchanged. dilution of 5x is being telegraphed by that move

80% less shares outstanding leaves 5x more room to issue brand new shares!

Genius!

#1). You have money. Other people want it. All of it!
#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter,

Public Reply Private Reply New Post
Keep Last Read
Keep Last Read Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up