Michelex Corp (fka MLXO)

[g-invest]

READ THIS:
http://edgar.sec.gov/Archives/edgar/data/1084263/000101041206000041/0001010412-06-000041.txt

Pay specific attention to this part:
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The unpaid principal amount of the Convertible Debenture will be convertible into shares of the Company's common stock at the lesser of:

* 120% of the lowest closing bid price of our common stock in the 10 trading days immediately preceding the date of escrow closing; or

* 80% of the lowest closing bid price of our common stock in the five trading days preceding the date of conversion.
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So what does that mean? Well, if you know how toxic financing works, you know the authorized shares don't increase till the financier needs the shares to "pay back" all the shorting he/she did.

So assume the escrow closing date was the 15th, when it fell as much as it increased. The lowest closing price for the 10 days preceding was .0090 or so. Evidenced here:

03/02/2006 - .0090
03/03/2006 - .0090
03/06/2006 - .0110
03/07/2006 - .0110
03/08/2006 - .0170
03/09/2006 - .0190
03/10/2006 - .0250
03/13/2006 - .04
03/14/2006 - .08
03/15/2006 - .045
03/16/2006 - ?

That means 120% of .0090 or .0108, is how much the toxic financier is getting his shares for that he shorted to all of you. Doesn't that bother you?

Don't believe me? Call the T/A on March 28th! See how many shares are authorized then.