Ill explain this very clearly and straight forward. Nothing much changed regarding the increase in authorized shares other then the CEO received preferred shares which equate to 1 billion if converted. That is why the authorized increased 1 billion. It must be increased and held by the company as the new preferreds are convertable. The authorized WAS NOT increased for note conversions. Don't believe me? Let's do some math.
On June 17th the company stated in a PR that in TOTALITY key word there, totality, there was about 290,000 left in convertible debt. It also stated that about 361,232 dollars in convertible debt had been removed by issuance of 250 million shares. Now do the math. The conversion rate on that debt was .00144 or so. Look back periods and discount rates always must be factored in so .00144 sounds just about right for that period of time. Since then though newer conversion for the remaining 290k in debt actually have a higher conversion rate. Reason is that the lowest low during recent look back periods is .0022 while before it was .0013. Never mind that for a second. Let me be as conservative as possible and use PAR value .001 for the conversion pps of the remaining 290k of debt as of that PR date. That would equate to 290 mil shares. As of that PR the outstanding shares issued were a little less then 400 million. 360 million or something like that. Now add 360 million and 290 million together. What is the total? It is 650 million shares. What is the current outstanding shares? Isn't it now around 600 million or a little more? I do believe it is. Math is beautiful isn't it.
So why the 1 billion increase in authorized if the company already had enough authorized to handle the note conversions? I stated it above. There has to be "collateral" for the recently issued preferred shares that the CEO received. Don't believe me? Let's use math again. He received 100,000 preferred shares at a conversion rate into common of 10,000 to 1. 100,000 times 10,000 equals 1,000,000,000. Exact same as the increase of the authorized. From the math it is plain to see why the authorized was just increased 1 billion shares.
Now this increase will be used by folks or entities who want to see the price drop. If you sell though understand that you will be joining other retail only. Converters have no more shares to get converted. The easy math above shows that. If you wish to sell then sell but if you want to sell just because of fear of more note conversions then you need to look into the math to understand that fear is unwarranted at this time.
Finally I will already predict that some will now say well converters won't have shares to dump but the CEO will. First he will have to file paperwork to do that first. Also the CEO will want to get the share price much higher before he would consider converting his preferreds. Why wouldn't he. I know I would. Bottom line is MJMJ is fine imo and is looking good for next week and the exposure. Remember to not fall in love with it though and take your profits. Use math and logic and just as it was a couple of hours ago there is no reason for this not to have a nice run. Worry about note conversions is fear and the math shows there shouldn't be any conversions. Use math and logic on this, not fear.
