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They may be able to convert into common, but my understanding is that the holder will not be able to trade is until the 6 month hold on the 144 restricted shares.
This goes to 1 year if they are not reporting on time, which it looks like they are now.
Brain freeze here, your right and XLIT is late. That is a big deal for many reasons.
Actually its the 5th calendar day after the extension, so they must be filed by Friday.
Your right, and if they fail to do so they will be in default with the convertible debt holders.
You had news yesterday, even more convertible debt!
Agreed on the NT
Agreed, thanks Mick.
Be careful what you wish for.
.0001
Your just wrong And until they convert, the note accrues interest that is also convertible into more common shares.
And they are no "so called note holders" they are the note holders, again do a little due diligence and read the 8K.
This is how these notes work, maybe your a bagholder and do not want to hear this.
Nevertheless it is likely based upon the 8K that there could be a lot of discounted shares hitting the market as early as next week.
It's not up to the insiders, its up to the note holders who have the right to convert.
You do not understand how these notes work evidently, the note holders want to get repaid and this is exactly how it works weather the insiders like it or not.
The company agreed to the terms when they made the deal with the note holder, like it or not.
Read the 8K
Convertible conversion imminent according to this 8K regarding the convertible note dated January 14, 2016 (closing date).
Likely see many shares hitting the tape early next week if the note holder converts right at the 90 days.
The lowest trade in the last 20 days from what my charts are saying is .081 (unless it goes below that prior to conversion), this would put the conversion shares at .0486 for the note holder.
If anyone sees anything contrary to this on the 8k that may not be noted, please post it.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11139647
Here are excerpts from the 8K
" Each of the Notes are convertible at any time ninety (90) days after the issuance date of the note, in whole or in part, at the option of the holder into shares of the Company’s common stock at a conversion price equal to the lower of (i) sixty percent (60%) of the lowest trading price of our common shares in the twenty (20) trading days prior to the date of such note, (ii) sixty percent (60%) of the lowest trading price of our common shares in the twenty (20) trading days prior to the date that holder delivers a notice of conversion."
and
" Section 4.
Conversion .
a)
Voluntary Conversion . At any time after ninety (90) days after the date of this Note, this Note shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, from time to time (subject to the conversion limitations set forth in Section 4(d) hereof). The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “ Notice of Conversion ”), specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such date, the “ Conversion Date ”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. "
Hard to imagine that most are reading the filings based upon the questions asked on the forum.
Seems the "investors" here are totally unwilling to do the littlest of due diligence by reading the filings, (not the press releases)but the SEC filings, 8K's, 10Q's, 10K's etc...
Those that do should come to the conclusion that in the near future there will be many more shares coming to market to satisify the convertible debt obligations of XLIT.
If anyone can point to something to the contrary in the filings it would be good if that were posted.
Otherwise the pattern of those who take on toxic debt like this has been a settling in the very low sub pennies with the occasional reverse split to bring the price back up.
Right on!
This S-1 is further proof that will keep enormous pressure on XLIT IMO, likely we see new 52 week lows as early as today.
If my broker would let me, I would STILL short as much of this as possible, IMO its a no brainer with the looming convertibles coming to market and the likelyhood this thing sees sub pennies.
Just an opinion but have seen the share destruction in too many other companies who have taken on this type of financing to think this will end differently for XLIT.
Read the 8K's and make your own decision.
There was plenty of warning on this one from many posters. All ignored.
LMAO, give it a day or two.
FYI its called an 8K
Do you mean .005 ?
The problem I see is multiple stores within 1 or 2 miles of each other. These are not Starbucks here, consumers but a matteress every 5 years at best.
IMO this is a huge disaster waiting to happen.
This looks right, plus just over $5000 in interest. Unlikely however they convert the entire $262,500 note at one time, more likely is a quarter or half of it then they would bail on that and see where the stock settles in. At that point they could get the next batch at a lower price.
This is why this type of financing is toxic.
Where has philwil gone? Last post way back on the 9th of March, evidently can't take the heat.
IMHO, as I read today's 8K, it reads like a virtual guarantee that this will trade down to a sub penny price, from my perch the only thing stopping that would be a reverse split which would be just as bad or worse for shareholders.
This is just how this toxic financing works, see the many examples out there.
If this product, light sheets, held so much promise and or revenues, this type of awful financing would not be needed, there would be alternatives such as selling preferred shares or something along those lines that would not cream the shareholder base.
Take it for what it's worth, just another opinion among the many.
Thanks Jim, accepted. Your a classy guy, not too many would do that.
That being said I have been wrong on plenty of my calls over the years.
Could have been a worse week. I'm just saying........
In almost every case with this toxic debt the result to the shares is the same.
Tryan2, IMO, Respectfully you just do not understand the mechanics going on here with XLIT.
Not feeling the short squeeze there philwil, and yea, IMO it was and may be still, good idea to keep shorting, if only my broker had some to short.
jimppc, you still feeling this way about XLIT? You have been eerily silent the past few days.
You nailed it Rawman! Great call, and IMO XLIT has a lot more downside left.
If you liked it at .84, you gotta LOVE it here!!!
Who could have predicted such a crash? Oh yea, there were a few of us that have been.
A "wash"? I call today's selling "bailing" or "nailing the bid"
Almost 2 million shares traded today with most of it coming about 1:30 EST to end of the day.
Well here is the start, IMO, there is still much lower prices to come because of the looming convertible debt.
At .18 cents the $250,000 note plus the $15,000 accrued interest for the 6 months, would convert to 1,472,222 shares if my math is correct.
Yes, that is nice work if you can get it!!!
You are absolutely correct, I had not seen that. .18 cents, WOW when those shares come to market they will just be nailing the bid hard.
I wish I could get some shortable shares, my broker has none :(
The toxic debt is anything but BS, here are the filings made to prove it:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11059177
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11139647
These are not press releases, they are official filings with the SEC, these financings happened as outlined in the 8k's and unless prepaid, which is highly unlikely given the cash needs of XLIT, they will be converted to common stock at the 40% discount to market and sold on the open market.
IMO this will end very badly, according to the 8k, as early as April (90 days) some of this toxic financing can be converted at a 40% discount to market. See the 8K here http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11139647
This will wack the shares good, then again early June there is another conversion that can come to market, these never end well for the shareholders.
When this happens this board will be littered with posts asking "What is happening?"
Seen it many times with this kind of financing, this is my opinion of the future for XLIT.