NewStream Energy Technologies Group Inc (NSGP)

[PaulFran]

Whitecoal: restricted stock is all stock issued by the company in exchange for cash investments or services provided. Normally they are given to convertible note holders who convert their debt into company shares. All stock issued by CCTI is restricted for 6 months. After the 6 months provided legal opinion is provided the holder can lift tye restriction. One of the biggest challenges CCTI had was the fact they had convertible notes on their balance sheet. They thankfully succeeded in removing all notes by June 30th. When convertible note holders convert their debt into equity they do so on a % of lowest price of the stock on a look back basis normally 10 days. It is the most toxic and share price crushing financial tool a company can use. When it comes to maturity of the note they are incentivized to try and drop the share price so thet can get more shares
They have been known to pay people to post inaccurate comments on boards to drop the price.

I think that the removal of all convertible notes was one of the most important things this company has done.