DD Support Board and Research Team

[janice shell]

silly me, thinking note holders who rule OTC would enlist the help of shorts so they can convert more shares at lower prices.

That is silly. Why would they want to convert at lower prices? They convert just before selling. They don't convert a specific number of shares, they convert a specific amount of their debt. Naturally you shouldn't forget to factor in their discount to market, which can be as big as 50%.

So no matter what the price, they'll get 50% more stock than the conversion rate specifies, because of the discount. If the stock price is higher, they won't get as much stock overall, but the stock price will be higher as they sell. And it's easier to sell a smaller number of shares at a higher price. Dumping hundreds of millions of shares in the low triple zips can be tough.

So what you say doesn't make any sense. Toxic funders have no interest in driving down stock price. Needless to say, that stock price will drop as they sell. So if they're converting in tranches, by the time they get to the second one, the price will be lower. And so on, until the stock bottoms out, and further sales become difficult.

That's when the company does a reverse split.