Info statement and attorney letter for 2011 finally filed at OTC Markets.
Detailed share issuance disclosure shows ~275M shares issued to DMBM Inc for "conversion of debt" in the period May 2011 to now by my count. (They don't give the issuance dates but that's what I get when comparing with last year's report.)
~209M issued at $0.0025, ~64M at $0.005, remainder at $0.01.
I estimate that ~175M of the $0.0025 shares were issued this year, and in any case all 209M would have been issued since Nov 2011, when according to the financials DMBM's conversion price was reset to this level.
All of these shares are free trading. I repeat earlier query - how can they all be free trading? Particularly as the convertible note for most of them was only issued in Oct/Nov last year? Eh?
DMBM Inc does not show up on their list of 5% holders as of end 2011 and so DBMB Inc would have flipped at least a bunch of the shares issued last year, and probably IMO the whole 275M issued in the last 12 months.
The total cost to DMBM of all these shares was ~$865K. No way to be exact about what their selling prices were. If you guess at an average of $0.012 then they would have gotten ~$3.3M, for a profit of ~$2.4M. Not bad! At least somebody's making money from VRAL.
The filing states that the 81M T&T settlement shares from Nov 2011 were in fact issued to T&T, against my previous speculation that the note covering these might have been assigned to DMBM.
The filing also states that these shares were restricted. If that is the case then T&T could not have quickly flipped them and must surely have been a >5% shareholder at the end of the year (ie when there were 933M common outstanding). But they are not listed as such. Perhaps T&T got VRAL's counsel to remove the restrictive legend and then flipped; perhaps something else happened; perhaps the filing is incorrect.
They state once again that they don't have enough authorized shares (1.5B currently versus 1.1B outstanding) to satisfy potential conversion/exercise demands for the various convertibles/options/warrants on issue, to cater for which they would need to either R/S or increase the authorized amount. They (ie Haig and his brother as the only directros) can do either without consulting the shareholders and I suppose one or the other will happen before too long.
