Sunset Island Group Inc (SIGO)

[surfkast]

How toxic dilution works.


TenKay Member Level
Tuesday, June 19, 2018 4:40:48 PM
Somewhere I discussed that specifically...would take me awhile to find. But that is actually how almost all note holders work.

They only convert a dollar amount of a note that they expect to be able to sell within a few days. So they send the conversion notice for X dollars under a given note that has aged the necessary amount for the stock to be free trading when issued. The stock is then sent by the transfer agent (via DWAC) sometimes the same day or within 24 hours. The note holder then sells within a day or so they don't assume any, or much, pricing risk.

As long as they don't hold more than 5% at any given moment, they don't have to report anything. They can send a conversion notice every 3 or 4 days if they like...and turn over 4.99% of the OS each time and never have to report. To be safe they will sell one tranche before they obtain the next...always keeping the conversion on any given tranche below 4.99%.

The 10% limit would make them an "insider" and restrict what they can sell...so they never come near that one. Most just stay below 5% an they can do whatever they want.

As long as the TA is gagged (or only updating the OS on OTCM every few weeks) no one can see the conversions happen in real time and thus potentially before they sell in the day or two window they hold the stock.
© 2018 InvestorsHub.com, Inc.