Blue Eagle Lithium
High Times
Home > Boards > Free Zone > Education > Investor Help (NO Ihub questions)

Note conversion Qs:

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
pantalons Member Profile
Followed By 3
Posts 229
Boards Moderated 0
Alias Born 10/12/17
160x600 placeholder
pantalons   Thursday, 11/16/17 11:57:22 AM
Re: None
Post # of 5291 
Note conversion Qs:

Hi, newbie to OTC generally here, have done some googling but unsatisfactorily, so thanks in advance for fielding these:

If I'm a lender who has convertible notes, and let's say they've defaulted, so I convert them "at par", which according to the terms of agreement par value is .00001, what exactly does this mean? -- example below:

If I am owed $100, does this mean that I can convert that debt into 10,000,000 shares and then issue them on the market at whatever the current pps is at? So, say, if the stock price is currently .0005, does that mean my $100 is now worth $5000, assuming I can get paid for all of those shares?

What am I missing in my math/reasoning? I don't quite understand par value vs pps, as perhaps you see.

On another note, when dilution occurs, how does it happen? Like this?: The company or lender converts authorized shares / convertible notes into shares and does this through a MM who pays the company/lender right there, or...?

Thanks again

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist