On4 Communications Inc (ONCI)

[reader3]

Here's some better math:

1.8 Million settled at 33% = 600K. ( http://www.otcmarkets.com/stock/ONCI/news/On4-Communications-Announces-Second-Meeting-With-QVC-and-Pilot-Order-With-a-Large-Middle-Eastern-Taxi-Company?id=172718&b=y )

Announced 10/16/17 shares to be sold at 45% discount to market.

LAM settlement approved by court and became effective and binding 9/26/17

First tranche 40 Million shares, with no issuance date or price announced.

On 9/26/17, (if issued immediately) the stock price was .0159. 55% = .00875. 40 million shares @ .00875 = 350K, more than half the original 600K
On 10/16/17, the stock price was .0108. 55% = .00594. 40 Million shares = 237K, more than one third the original 600K.

Interestingly, the stock price dipped massively between 10/2 and 10/5 on elevated volume as you might expect if someone is selling a lot of shares with little concern for price maintenance. It bottomed at .0081, just under the 45% discount from the price on 9/26. This suggests to me that the first tranche shares were acquired and sold almost immediately after the settlement was approved by the court, possibly using a slightly different starting point on a different but near-term date, and the first tranche was disposed of before the announcement. And it was worth between 300 and 350K.

Leaving barely 300K in debt over hang for most of the last 2 months.

As an example of what this looks like, on Tuesday, the price closed at .007. There were about 6 million t-trades listed at close. Assuming those shares were purchased at 55% of .007 (rather than, in fact, a higher price, which is reasonable, since the price had been dropping), they were purchased at .00385 and represented 23K in debt. At this kind of dollar volume, that 600K debt can be cleared in 26 trading days.

We are now at roughly 40 trading days since October 16. And, interestingly, the last few days, VNDM has been hovering at around .01, rather than selling aggressively. Wonder what that means?

And most of the action driving down the stock price the last few days has been retail, selling at the low, rather than buying.