On4 Communications Inc (ONCI)

[QTRADERQ]

Revised: Livingston Asset Management selling accounts for 6% of total share volume per day, not 10% - 25% as you indicated. Respectfully, your percents are just not realistic.

Remember ... as per the 3a10 Settlement Agreement ... Livingston receives shares at a forty five percent (45%) discount to market.

Pursuant to the terms of the Settlement Agreement approved by the LAM Order, the Company agreed to issue to LAM shares (the “LAM Settlement Shares”) of the Company’s common stock, $0.0001 par value (the “Common Stock”) at a forty five percent (45%) discount to market. The Settlement Agreement provides that the LAM Settlement Shares will be issued in one or more tranches, as necessary, sufficient to satisfy the LAM Settlement Agreement through the issuance of freely trading securities, exempt from registration, issued pursuant to Section 3(a)(10) of the Securities Act, with the first tranche of Common Stock to be issued to LAM being 40 million shares.

http://www.otcmarkets.com/ajax/showFinancialReportById.pdf?id=180752

So for every share Livingston received when the market price was .0095 (their discounted cost was .0052).
At .008 market price , Livingston's cost was .0044.
At .006 market price, their cost was .0033.
And so on ...

Since we know Livingston is receiving their shares at a 45% discount to market. Let's figure out how many shares will need to be issued by ONCI to repay the 880k debt to them.

So for example purposes only...

1) If ONCI market price was fixed at .0095 (which it isn't, it dropped to .0053 today). If you work the equation backwards. On $880,000 in debt at a discounted price of .0052, it would take 169 mil shares issued to Livingston to repay the debt.

2) Since we know the stock price has gone in the toilet for the last two weeks, dropping from around .01 to today's closing price of .0053. It becomes necessary for a greater number of shares to be issued to Livingston since they are receiving their shares at a 45% discount to market. So, based on my calculation in item 1, and the dropping stock price, I would estimate 200 mil shares will need to be issued to Livingston to settle the 880k debt owed to them. (I recall Mary777 estimated 150 mil shares would need to be issued to Livingston so we're in the same ballpark.)

Has Livingston Asset Management LLC sold their 200 mil shares yet? I don't think so.
Here's why?

Because that would tank the stock. From looking at the chart .. the stock price stabilized in the .01 range for an extended two month period while Steve Berman was "enthusiastically announcing deals" (in the months of Oct & Nov). If Livingston was selling 10% - 25% of total shares each day like some say, that would put too much downward selling pressure on the price because there's simply not enough retail buyer's out there to absorb 200 mil shares (which is also why the stock is collapsing now.). Therefore, a more realistic percent sold by Livingston is 6% of total daily shares, or 1.26 mil shares per day (see trading metrics).

Trading metrics:
The total shares traded from 10/16/17 to present were 817 mil shares. Or ~21 mil shares per day (for the last 39 trading days). If Livingston sold 6% of the 21 mil shares per day (as per my contention) that's 1.26 mil shares per day which would equal $6,550 of the debt owed to them (using a .0052 discounted price). Based on these more conservative numbers (than yours Monkeyfingers) it would take 134 trading days (or 6 mos) before Livingston was done selling their 200 mil shares. Which means Livingston's selling will end in March 2018. JMO