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The current A/S is 750M, and GDSM is almost fully diluted. That puts a halt to any dilution that can occur; so, NO DILUTION BY THE COMPANY CURRENTLY.
There is absolutely no indication that GDSM is even considering bankruptcy.
Until GDSM completes the uplisting, we can only speculate what all it will entail. There is always the chance that they will amend their articles and alter the conversion rate of the series E shares again. There are a lot of unknowns, and only time will tell who is correct in their assumptions!
Huge step forward? I must have missed that one! LOL... This company hasn't made any steps forward for MONTHS!
With the A/S increase to 990M, they have plenty of shares to dump! If they default to the Asher terms for the notes due, and based off of today's closing pps, they would dump ~175M shares.
In all actuality, all GDSM will have to do is file a revision to their articles and state the discrepancy.
Kind of like another company, SIR*, that increased their A/S to 1.5B and then had to revert it back to 440M to stay in SEC compliance.
My question would be how many new notes did SIRG take out this quarter to cover their ~$80K per month operating expenses? The MPO was supposedly approved once, and they just kept on taking out more and more notes with TOXIC financing companies. That isn't going to change if/when the MPO is approved this time. LOL
JMHO
It's only a matter of time before MASSIVE DILUTION occurs! SIRG owes $523K by Feb. 16th, 2013.
The massive number of shares that will have to be issued to cover their $500K in toxic debt will definitely cause a R/S to happen in the not so distant future!
JMHO
There has been no A/S increase! GDSM cannot dilute further than the current A/S, which is 750M.
It is only a matter of time before we see MASSIVE dilution! With the A/S increase to 990M and all of the notes coming due, they have no other way to keep their heads above water. After dilution, I think we will see a R/S so that they can dilute even more.
SIRG is using their common stock as an ATM machine!!!
YES, they did release a PR stating their MPO was approved!!! Their MPO is still NOT APPROVED!!!
So, SIRG released a PR stating their MPO was approved without confirming that it was actually approved? Now that was a FLUFF PR!!! What a freaking joke!!!
With high risk comes the possibility of very large rewards! GDSM!
You can't beat discount shares!
Agreed!
Good Morning B_Rich!
That's going to require one heck of a R/S after the next round of dilution!!!
Right now it's just a waiting game. Uplisting simply takes time.
INCORRECT:
Did you not notice that SIRG had to find alternative financing companies with higher interest rates due to the non-compliance issue? Asher only began loaning SIRG money again when they paid off a note in cash and filed for an A/S increase to become compliant.
Good ole J. Rod can sit back, do nothing and still bring in over $150K /year plus $5,000 per board meeting and $1,000 per teleconference meeting!
LOL... You don't need a link to prove that a financing company frowns on a company that is in non-compliance with their note! That is finance 101. LOL...
However, Asher most likely frowns on any company that does not comply with the terms of their notes, and would look negatively on that company. That is where the statement "Asher views SIRG as HIGH RISK" comes into play!!!
Information on the A/S increase from 440M to 990M can be found here:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8906973
We will see a significant amount of dilution very soon IMO! We already know that they have over 20M shares that will be released as soon as the A/S increase is processed, in December 2013.
They have fulfilled the notes to Asher. However, SIRG IS NOT IN COMPLIANCE WITH THE TERMS OF THE ASHER NOTES with regards to the number of shares that must be kept on reserve until the A/S increase is processed. I'm positive that not being compliant with the terms of the notes is viewed NEGATIVELY! Lol...
How many shares do you think will be dumped once the A/S increase is processed?
The key word there is IF long term financing is secured. Nobody wants to fund a company that has over $500K in notes coming due by Feb. 2013! Until, the current notes are dealt with, it's highly unlikely that SIRG will secure any funding other than more TOXIC funding. I keep seeing individuals say they have financing in place, yet SIRG clearly states they are "seeking funding to reopen the mine".
Let's be realistic here, SIRG can pay off the notes at any point during the terms of the notes, previously 12 month and now 9 months. SIRG has no reason to decrease the terms of the notes since they can pay them off at any time, only Asher has a reason to decrease the terms of the notes. That leads one to conclude that Asher views SIRG as a HIGH RISK loan!
JMHO
Funding has not been announced, and it has yet to be secured according to the filing. Those are the facts we have to work with.
The filing states they are still searching for sufficient funding to re-open the mine. The only type of funding SIRG can/has been able to get is TOXIC FUNDING that requires things like an A/S increase to 990M!!! Please see the link below for info on the A/S increase.
Asher has also decreased the terms of their notes with SIRG from 12 months to 9 months. That shows that Asher is considering SIRG a HIGH RISK company. With no bid support and over ~$500K in notes coming due soon, how could anyone not view them as HIGH RISK?
Agreed, SIRG will just do a R/S when they run out of shares to print, and then print more IMO!
I got the "trading prices" from the below document. Regardless, it is still VERY TOXIC FINANCING!
A convertible note with a face value $37,500 was converted into 12,212,798 shares of common stock.
$37,500 / 12,212,798 = 0.00307pps
Asher can dilute all the way down to 0.0031 and still make money. When will Asher begin to dump those shares??? With no bid support, it could crash the stock!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8914764
With their conversion rate being 51% of the lowest three trading prices from the 10 previous trading days, I would have to say their financing is pretty darn toxic! Remember, they can convert as early as 180 days after the notes are issued! What a joke!!!
Those nice fat salaries are being paid for by TOXIC FINANCING! With the terms of the notes reduced from 12 months to 9 months, even the toxic financing companies see the red flags!!!
There seems to be a trend of an investor posting that there will be news at least once a week. I guess if you say it at least once a week, maybe you will eventually be correct? Lol...
Nov. 26th Chris12
Looking pretty good here!
A/S INCREASE FROM 440M TO 990M:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8853732
Didn't someone calculate that value before the A/S increase? You also have to consider the fact that it's highly likely that SIRG will ALSO need to complete a R/S and possibly another A/S increase to even come close to getting the mine in production.
What exactly do you call this PRER 14C then? Did they lie to the government when they filed this document that said they are increasing the A/S??? It clearly states the A/S has been increased to 990M, and it will be effective in December. What a joke!!!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8906973
That is just for the notes that are coming due. You also have to consider their monthly expenses such as salaries and such. Their operating cost for Q3 was $245,129. That's $82K per month.
SIRG will eventually have to also do a R/S just to keep their heads above water IMO.
Well, if we consider the number of shares they gave Asher for $37,500, it will take around 200M shares to cover that debt. However, the pps is steadily decreasing, and the lower it goes, the more shares it will require.
Agreed!!!