North Bay Resources Inc (NBRI)

[1manband]

yeah they are going to sell them for half of what they paid for them??

That is not how it works.

Regulations permit the convertible holders to sell the shares immediately upon submitting the conversion request. They do not have to wait until they are issued, which can take days or weeks. Once they shares are issued, they can cover their prior sales.

That allows the toxic convertible holders to maximize their profits, as they can sell at prices substantially higher than the VWAP. It also contributes to the death spiral.