Elray Resources Inc (ELRA)

[Bob22701]

ELRA has been destroying Shareholder wealth for years. The biggest component of this is that the company has decided to get financing through convertible debt, meaning that the financers can sell new company shares to recover the loans as long as there are authorized shares available.

This is called dilution!!

Another impact of drinking the convertible debt Kool-Aid is that the debt holders force ELRA into reverse splits to provide more shares to dilute. The end appears very close for ELRA since the state of Nevada seems to be preventing a requested reverse split for the past year.

I expect that the promotion over the past week has been a last effort by the Convertible Debt Holders to raise money through diluting shares prior to taking direct control of ELRA assets.

Shareholders of course, will be left with nothing.

It is better to check 10-Qs and 10-Ks for convertible debt exposure before ever following stock board leads in investment decisions, particularly when dealing with sub-penny stocks.

GLTA
Bob