North Bay Resources Inc (NBRI)

[foxwoodsfan]

Since the reverse split occurred they have averaged somewhere around 420 shares issued on conversion per dollar of debt. It's fair to say that ratio is going to get much worse because the PPS is tanking. The only thing they have is shares. They have zero revenue so the only way they can pay down that debt is by issuing shares. It's not like the conversion notices are going to stop coming. It looks like in the near future they will be issuing 1000 shares or more per dollar of debt. The A/S is still at 7.5 billion for reason. Eventually the VCs will not be able to unload the shares and the volume will dry out. That's basically the time that the corpse gets buried. The music for this little sidewalk show is slowing down and eventually it's going to stop.

It's really this simple. The number of companies that survive toxic death spiral financing are minuscule. Does anyone really believe that NBRI I is the exceptional company that will break the mold?