This is One possible explanation on why the financing is set up like it is with $13 million in a convertible note at 5 cents due in one month. If they do a 10/1 R/S that 5 cents becomes 50 cents and outstanding shares become 30 million with insiders holding approx. 5 million (I know it is a little less than that). If that note is held by someone or group that are about to become insiders or at least will be very close to the insiders, if they convert the note immediately they would get 26 million shares to pay back the $13 million. That would give the insiders approx. 31 million shares of the new 60 million outstanding shares and now they would have the majority and control again. This is something these lenders might require in order to lend them $. This is not what I am saying is going to happen, I am just saying it is a possibility. If it does happen, I think it will be followed by some very good news such as 4th quarter numbers. It would get diluted, but it is not going to go bankrupt, which is the most important thing. I do believe the fundamentals will be strong enough to make this investment at the current share price a once in a lifetime investment even after the dilution I mentioned above. Again, this is not what I am saying is going to happen, it is just a possibility.
AI
