Puration Inc (PURA)

[TenKay]

"We'll have to wait one year to sell my PURA dividend stocks.
(I don't mind waiting a year, if PURA is still in business a year from now, it should be worth more now than it is today.)"

Let's take a look at what that year of "waiting" may hold in store for PURA stock.

PURA currently has a over $2 million in debt notes, mostly convertible. In the most recent quarter it appears that one of the Tilton notes was partially converted - about 36.3 million shares issued for $27,500 of debt.

Since the only basis in the fins for that issuance was a reduction in one of the Tilton notes...that is a pps equivalent of $0.00076!!!

So the future likely holds significant dilution.

Secondly, they raised the AS 10-fold from 50 million to 500 million. Why so high?

It is obviously because of the expected future conversions because they only needed an additional 56,000,000 shares for the Preferred B conversion for the divvy to USMJ shareholders.

I can't find the conversion terms for the notes, but no doubt they are floorless.

All of the above suggests the pps in the coming months and years is going to face some very stiff headwinds.