RJD Green Inc (RJDG)

[tedpeele]

RE Dilution. From the Dec 7 PR:


<<Both parties mutually agreed they desire to retire this debt through a more conventional lender as soon as possible. In the interim, Equitas and RJD Green have executed an extension of the note thru August 31, 2017 with amended terms more favorable to RJDG in both interest rate and conversion terms, which include; no trading of shares under $0.01, 15% conversion discount of 28 day mean trading value, maximum sale of 20% of daily trading, and 8% annual interest. Although no stock has ever been sold by Equitas to date, they hold 4.25% of total shares issued.>>

Every day that any dilution occurs, it is capped at 20%. IOW this is NOT a bottomless pit like the typical toxic convertible, where investors often have NO CLUE on any given day whether a huge batch of shares flood the market.

This 20% limit IMO should simply be thought of as a MAXIMUM 20% of sales volume by one seller in any given day. All we need is 20% of the volume to be buyers to counterbalance this effect. Given the undervalued status here this just doesn't seem to be an issue to worry about because it is limited so greatly.