Bioelectronics Corp (BIEL)

[Det_Robert_Thorne]

Not a "conspiracy theory" but basic financing issue

I'm not suggesting any kind of conspiracy theory or making the issue more complicated that it is.

In 2015, BIEL was able to get $1.85M in proceeds from the sale of Notes Payable, and it used $1.75M of that cash.

In 1Q/16, it got about $180K from issuing new notes, and with the cash left over from 4Q/15, had about $324K. It spent $302 of that cash, leaving $22K.

Of course we'll never know for sure, but since the SEC complaint was filed on Feb 5, that probably put the brakes on any new notes that would have been issued in 1Q/16, and it probably curtailed any plans to sell shares to third parties, as had been the norm until the SEC went into action.

Now, BIEL needs operating cash (even as revenues may rise) and so they've probably shifted from a non-complient convertible note model (that the SEC found wanting) and has shifted to a normal model.

To get cash to loan BIEL, IBEX and the related parties could make conversion demands of BIEL, then sell the shares themselves.

If so, then we'll probably see an increase in the dilution from 1Q/16, because at a 50% discount to a $0.0012 stock price ($0.0006 per share,) knocking $50K off the existing balance will cost apprximately 83.33M shares. The cost of clearing $250K from the note balance for relending to BIEL (with $250K profit to the sellers) would be nearly 420M shares.

We'll see in seven or eight weeks -- that's when the 2Q/16 report is due -- whether or not this idea of mine holds water or not.

I suspect, however, that it will.