Argentum 47 Inc (ARGQ)

[Talc Moan]

What happens is this. If you fund a company and after holding your note for 6 months you get to start converting your money into shares. You sell them at a discount based on what you negotiated with the company. Well if the share price as in GEQU's case goes up substantially you are then eager to convert as much of or all of your debt as quickly as possible. Well the SEC protects shareholders and companies as best they can by only allowing you as a funder to convert 4.99% of the Total Outstanding of a stock. Recent years ago it was up to 9.99%...


Well in the case of our last Funder because we knocked out 1 yesterday. He is selling his shares as fast as possible without cratering the stock so he can sell the last portion and we become debt free. Now the kicker is why I believe the short interest is so high currently. The Funder has a very short amount of time to cash in on his shares he funded the company with at such a steep discount. Everyday that passes the share price 20 day MA moves higher. The higher the 20da MA the less shares they can convert and sell which means less money they make. So with the OS around 450 mill est. they will convert the last of the debt. But it takes 3-5 days to do because there is paperwork you need to fill out Attorney letters you need and then clearing. So while they wait they short the note into the market then cover the note when the shares become available. It takes time to understand but is a trick funders do because they have the shares to cover their own shorts so they don't get caught. BUT they still need to buy those shares back from the open market or cover them. With Shareholders not selling on the bid it makes it very hard for shorts to cover so they have to slap the ask buying back their own shares. Now if we break .0055 there will be possibly a short squeeze because those
Cheap shares they shorted from their last part of the note will have to be covered and the higher we go the less money they make. Bottom line We are in a Win Win right now. The Debt is about gone regardless and we are going to go much higher. The trade able OS here will not be over 190-200 mill Max period ever. Which means we can easily go .25+ and beyond... GEQU is in one of the hottest Sectors and the company is hitting its stride.

Have a great weekend and I hope this helps. Awesome Weeks and Months ahead!!!