InterCloud Systems Inc. (ICLD)

[shotsky]

It is not dilution. Period.
Dilution is when they sell new stock at an offering below the current stock price. That is done to GET CASH for operations. Almost always, those are increases in the AS, not decreases in the OS.

The ICLD conversions REMOVE debt and decrease the OS. It is trading shares for cash they would otherwise have to pay. It is preservation of cash, and one can assume the cash is being used to dispose of even more toxic debt (convertibles with worse terms.)

The down side is that some investors are ignorant of the differences, and will sell into any RS because they believe any RS, for any reason, is a negative thing.

Won't affect me. I'll still be sitting with my 1/4 number of shares at 4X the price, and watch the price vary as it does every day anyway. Only before, a penny rise can mean 25% increase, and afterwards, it would take 4 cents to make that same percentage increase. Of course, the same incentives drive both.

Net net - the RS is immaterial to everyone except ICLD, which MUST decrease the OS to remain legal.