Yes, they do.. although I would admit, its more the exception than the norm. However, as this matter relates specifically to HPTG, I will provide you with a specific example.
On 10/12/2015, Magna converted a $17,300 convertible note at a 35% discount to HPTG'S closing stock price (in aggregate --- using prior trading day(s) calculated per the agreement ) which worked out to be roughly .0008. The price then used for the conversation was roughly .00052. The number of shares given to Magna by HPTG was 33,269,231. Under the normal toxic debt lenders modus operandi, those shares are then dumped onto the market strategically, driving the price down farther, enriching/covering prior short positions ... ultimately pushing the price down for additional note conversions and the process repeats itself until the company is pushed to no-bid and/or bankruptcy... the keys to this operation are the discount rate on conversion price and that the company's stock historically trades enough shares on a daily basis to facilitate the exchanges... Simple... Additionally, again as it relates specifically to HPTG, I would add that Magna was very active in helping broker the relationship and the deal between Hydrophi Technologies and Pro Star Freight Systems. The revenue generated by Pro Star alone is enough to cover any remaining/ new notes related to the merger. Magna is not destroying HPTG, but rather skillfully positioned itself quite wisely in obtaining a large ownership interest in the company... By the rules.... Their money, their rules... Roger has done an excellent job MANAGING this relationship. He did have to deal (swim) with these SHARKS for survival as we had virtually no money and no where else to turn .... Business wise, in the past, things just didn't go our way. Now things have changed quite dramatically and all shareholders are poised for success. Magna included...
Also, in my opinion, don't think Magna's lawyers won't use the Hydrophi/Pro Star success (along with a couple of others) in court during it's legal proceedings with Yippy Incorporated. Attorneys for Magna would undoubtedly want to show that their client is not as evil as is being alleged by Yippy's CEO... Food for thought...
