Bioelectronics Corp (BIEL)

[Det_Robert_Thorne]

"Normal" note conversion now taking place?

The significantly greater volume over the past couple of days has got me wondering about something:

The SEC is going after BIEL for the selling of unregistered shares at a discount to third parties as a way to get more operating cash and enrich family and friends.

But what would the SEC think of the conversion of BIEL notes to shares under the usual process?

What if, as a way to reduce the amount of outstanding debt and to get more cash to loan BIEL, IBEX and the family members are now using the normal way of converting debt by making conversion demands to the company, getting the shares at the discount specified in the note agreement, and then loaning the profits to BIEL in the form of new notes?

IIRC, as long as the noteholders structure the conversions so that at no time they own more than 5% of BIEL's outstanding shares, there are no reporting requirements.

IMO, a process like this could mean the the SEC couldn't object to ongoing dilution.