Lithium Exploration Group Inc. (fka LEXG)

[alexbh2285]

It is not good - it just is a result of the fact that the convertible buyers are not investors - they are basically diluting you risk free by converting at the lower of .0005 (in most cases) or 50% lower than the lowest of the look-back period. It will ALWAYS be true that the past conversion prices are lower than current prices unless BOTH of the following happen 1) the current price is less than .0005 AND 2) the stock has dropped more than 50% since the past conversion (so no higher than .00025 - about 10% of where it is now). So basically, until the company goes bankrupt the past conversion prices will ALWAYS be much lower than current prices - it just means that the buyers of the convertibles are not taking any significant investment risk - they are simply ripping off current investors with massive dilution and getting paid 8 to 10% interest to do so - DEFINITIVELY VERY VERY NOT GOOD!