141 Capital Inc (fka ONCP)

[funmaxus]

Here is another explanation.

For the shareholder who chose not to convert common shares to preferred shares:

Breakeven = 0.0175
To obtain same dollar return: 0.175
To obtain same percentage return: 0.117

First, a review of the offer:
http://www.141capital.com/pdfs/Offer_to_Exchange_Common_Stock_10-09-08.pdf

The terms of the offer are as follows. For each one thousand (1,000) shares of the Company’s Common Stock
tendered in the exchange you will receive one share of the Company’s Series B Preferred Stock. A Shareholder
must tender at least 1,000,000 shares of Common Stock to qualify to take part in this exchange offer

Illustrations of conversion rights:
(a) Assume you hold 1,000 shares of Series B Preferred Stock. Assume further that the market bid of the Common
Stock is $.50 per share. Because you have the right to purchase these shares at a 20% discount, your cost per
share on conversion is $.40. The number of shares of Common Stock which you can receive upon conversion will be
2,500 ($1,000 divided by $.40 per share).
(b) Assume you hold the same 1,000 shares of the Series B Preferred Stock. Assume further that the market bid of
the Common Stock is $0.05 per share. After your 20% discount, the number of shares of Common Stock which you
can rec$eive upon conversion will be 25,000 ($1,000 divided by $0.04 per shares).
================================================================================================================

The breakeven point for common sharehoders who chose not convert from commont to preferred will be: $0.0175

Quantity of 1,000,000 shares purchased at $0.0001

R/S at 175:1

1,000,000 / 175 = 5714

5714 x 0.0175 = 100 (rounded)
================================================================================================================

Now, to obtain the same equivalent dollar return as those who chose to convert the share
price will need to be: $0.175 for a 800.41% return

Common to Preferred:
Quantity: 1,000,000.00 shares x $0.0001 =$100.00
100.00
9.95 Broker Commission for sale
50.00 Broker certificate fee
5.00 Mailing cost
164.95 Total

Shareholder now has 1000 shares valued at $1.00 each or $1,000. A discount of 20% on share price when conversion from preferred to common.

Shareholder decides to sell. The value does not change, only the quantity. Rate of return will always be 500.21%
Therefore:

1000.00
-9.95
990.05

Calculating for rate of return:
( 990.05 - 164.95 ) / 164.95 = 500.21%


Common shareholder who chose not to convert from common to preferred will have to sell at $.175 in order
to obtain a similar dollar return:

Using the same data: 1,000,000 shares purchased at $0.0001
$100.00 Calculated as 1,000,000.00 x $0.0001
9.95 Broker Commission for sale
$109.95 Total

Common shares are then R/S at 175:1 therefore leaving 5714 shares, if 1,000,000 shares purchased.

5714 x $.175 = $999.95

$999.95
-9.95
990.00

( 990.00 - 109.95 ) / 109.95 = 800.41%

================================================================================================================
To obtain the same equivalent percentage rate of return, the share price will need
to be: $.1172

As explain previously, the maximum rate of return for the shareholder who chose to convert common to
preferred shares is 500.21%

In order to obtain a similar rate of return, based on the same 1,000,000 originally purchased at 0.0001
after R/S of 175:1, then,

5714 x .117 = $668.54

Given the same fee of $9.95, then:

( 668.54 - 109.95 ) / 109.95 = 498.99%

================================================================================================================

For Zecco, no commision transactions, given a $50.00 certificate fee and a $5.00 mail fee:
For shareholders that chose to convert from common to preferred: a 545.16% return
In order to obtain the same percentage rate of return, the shareprice will need to be .113
Comparison of non zecco to zecco: shareprice will need to be .109 for a 522.83% return

================================================================================================================

Oh the irony of it all, for all the longs!

a)Those who converted in full
b)Those who partially converted
c)Those who didn't convert at all

Now the board is going to be all mixed up and turned upside down as people are going to pump who never did
before and some will bash that never did before! And why? Because each chose a different conversion ratio!

Bobby + MC, et tu brut?

Of all the R/S this one is already turning out far more entertaining.

GO 141 CAPITAL!

JMO. GLTA.