Defense Technologies International Corp (DTII)

[xyz1002]

Why this could hit $0.10-25 soon?

Generally speaking almost all the time, in the OTC land the notes convert at 40-50% discount of the lowest price of the last 10-30 days. The lowest trading pps of DTII was 0.0015 on June 19th. In a normal note conversion, the note would be converting at 0.00075 (50% discount).

Instead, the note holders are converting at $0.01, that is 13.33x times than what they could have gotten at.

The worse in their mind they are evaluating the stock at above $0.03-0.05 now and willing to pay a discounted pps of $0.01.

They filed an 8K (see below) not just a PR meaning it is authentic and legal doc (or people will go jail).

So this is more like a seed investment by institutional investors in a Tech Startup. That's what I do as my day job.

In such scenario, the investors have a long-term view. They are not waiting to sell shares immediately like we see in most of the cases. They are thinking to make 50x-500x, i.e $0.50-$5.00 sometime in future.

That is not guaranteed. But I am just explaining how that works.

Another side note is the same investors will not allow a down-round, meaning the future fund raise will have a higher pps conversion. That is just standard practice.


The killer of OTC stock pps is floorless convertibles. Here, there are no conversion shares for sell and no dilution.

With such a low float (110 million) it will keep going up above $0.20-$0.25 which will give it a market cap of around $25Million.

If they sign one contract this will take off like OWC*P.

This is just my analysis based on my numerous seed investment in tech startups over 18 years. However, the OTC is full of scams. I have been wrong using the same analysis (APH*D, FRZ*T) in the past as almost in all cases the note holders convert and sell shares. Then my analysis is down the drain. So don't hold me onto this.

But I have a good feeling about this one that we are not dealing with an outright scam. Time will tell.

I buy OTC stocks for fun (see my profile) hoping to find a long-term hold. It should see $0.03 before Friday is my guess.

I will keep an eye on it and post updates as REPLY to this post in the coming days. So if you are reading this post after many days, then check the reply posts as well to see any updates.

Good Luck

From the 8k

The DTII Board of Directors has unanimously approved the conversion of $175,182.37 of company debt into shares of DTII Series A convertible preferred stock. An aggregate of 1,751,824 preferred shares were issue on June 13, 2017 to two individuals in exchange for full payment of the debt. Each Series A preferred share is convertible into ten shares of DTII voting common stock on a one share of preferred stock for ten shares of common stock basis. Additionally, each Series A preferred share carries voting rights on the basis of 100 votes per preferred share on any vote of common stockholders.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12138605