Red Giant Entertainment, Inc. (fka REDG)

[roby117]

Hi Tlsmd,

the toxic converters are always in profit.. they do not convert entire due amount in full. they convert part (they already get a 40-100%) discount on the low pps in last 10-20 days . even if they sell these shares even at the converted price they are break even however this results in pps to fall for them to get more shares

Lets assume REDG has a convertible of $10,000
they convert for $3000
e.g lets say the pps today is .0005
they get say 10 million at 40% discount so .0003
they sell these 10 million at .0003
Now they convert $7000
they will get nearly 40 million shares @ .00018 else they would have got only 23 million

This is how this conversion toxic works and screws up the pps for retail ivnvestors.. there need not be any negative news for them