1. If Equitas were out to screw over the company, they wouldn't have opted to convert $329,000 of debt at .02. The note was due months prior to that - so they had plenty of opportunity to demand a lower conversion price in order to get more shares. But did they do that? NO.
2. Equitas could be selling shares but all those shares at .02 would be sold for break even or a loss. Does that really seem likely? NO.
3. Did Equitas sell shares the previously got at lower prices? Not according to the company in a PR a number of months back that stated clearly Equitas had never sold a single share.
4. The 2 individuals certainly weren't selling shares in the last 6 months either. They had 144 restrictions, which if they were for 6 month periods would have become available for sale on May 15 and May 21.
One could argue that they have been selling in the last few weeks if they went off of restriction and that's been holding the price down. Let's take a look:
The price on 5/15 was .0194, and on 5/22 (1st trading day after 5/21) it was .0201. Sure doesn't look like the first guy was pushing the price down. On 5/25 it was .0188, and on 5/30 (YESTERDAY) it was .0171. Given the fact that the spread has ALWAYS been wide on this and the stock has ALWAYS jumped around a lot, if these guys were persistently selling the stock, do you really think we would have seen a drop of ONLY about 12% - from .0194 to .0171? NO.
OK, WHAT ABOUT VOLUME - MAYBE THAT TELLS THE STORY?
Once again. NO. The total volume over the last 13 trading days -including today's 2 million was 7.87 million shares. Over the 13 trading days PRIOR to May 15 the volume was 12.80 million. The recent volume has been only 61% of the volume prior to the 144s possibly going off of restriction! If they are selling the volume wouldn't be LESS, but it is!
There simply is no case here for dumping shares into the float. IMO Equitas and the 2 individuals continue to hold long and strong. Yes the OS and float are higher by a lot over the last 8 months, but there is no reason to conclude that the entities are selling shares based on the actual evidence we have.
