Based on the following note from the recent financial statement means that dilution will continue until August 2017 in order to pay for the purchase of Net D and in order to pay Chris Hall his $1 million sell of his company.
From the recent financial statement.
On January 18, 2016, in connection with the acquisition of Connexum, the Company issued a $1,000,000 note to Net D which bears annual interest of 18%. The Company is required to make monthly principal and interest payments of $63,806 for a period of 18 months through August 1, 2017. The Company paid $25,000 in a good faith advance on January 27, 2016.
As at January 2016 they have almost $2 million in convertible debt as I read it but I'm not financial analyst.
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Less: current portion of convertible notes payable
1,934,932
Additionally, it would appear that the company currently has close to 200 million treasury shares that it can issue as convertible debt so it would appear that this dilution of the shares could continue for a long time and will be used to fund its obligations. And they will be successful at it as long as people continue to purchase shares. Given the situation it is no wonder that Short Sellers are hitting the company hard from time to time and probably deservedly so.
Aggregate market value of the voting stock held by non-affiliates: $1,501,187 as based on the closing price of the stock on July 31, 2015. The voting stock held by non-affiliates on that date consisted of 100,079,156 shares of common stock.
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From the recent financial statement.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. As of May 10, 2016, there were 342,254,092 shares of common stock, par value $0.001, issued and outstanding, 1,000 Series A Preferred stock $0.001 par value, issued and outstanding, 63,437,500 Series B Preferred stock $0.001 par value, issued and outstanding, and 14 Series C Preferred stock $0.001 par value, issued and outstanding.
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So I don't think the dilution of shares is going to reduce anytime soon. In fact, it could increase as it appears to be a vehicle to fund purchases of new subsidiaries, which to a degree makes sense but is also not in the Shareholders best interests.
