Airborne Wireless Network (ABWN)

[nodummy]

The 10Q filed this morning says that the O/S was 2,390,496,267 shares on July 6th

On July 6th ABWN was trading at $.0009/share so that would be a market cap of $2,151,446

And since the 10Q says that only 6,323 of the 38,982 preferred shares from the S-1 offering had been converted as of July 6th that means there was still another 32,659 preferred shares to go as of July 6th.

I explained the preferred shares in the following post

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141908372

32,659 preferred shares using a market price of $.0006/share would be 2,254,902 common shares each. $1150/($.0006 X $.825)

32,659 X 2,254,902 common shares = 73,642,843,137 more common shares of dilution yet to come.

But since the price will continue to drop lower as more shares keep getting diluted from preferred share conversions that will mean way way way more than 73,642,853,137 more shares of dilution.

At a market price of $.0005/share it comes out to 2,787,878 common shares for each preferred share. $1150/($.0005 X $.825)

At a market price of $.0004/share it comes out to 3,484,848 common shares for each preferred share. $1150/($.0004 X $.825)

At a market price of $.0003/share it comes out to 4,646,464 common shares for each preferred share. $1150/($.0003 X $.825)

At a market price of $.0002/share it comes out to 6,969,696 common shares for each preferred share. $1150/($.0002 X $.825)

At a market price of $.0001/share it comes out to 13,939,393 common shares for each preferred share. $1150/($.0001 X $.825)

Let me remind you again there were still 32,659 preferred shares left to be converted on July 6th. There is very likely to be over 30,000 more to go by the time ABWN gets to $.0001/share

30,000 X 13,939,393 shares each = around 418,181,818,181 shares.

Anybody buying this thinking a bottom is in and the dilution is almost over could not be more wrong. ABWN is headed to $.0001/share unless it does a reverse split first. Then after the reverse split it is headed to $.0001/share again unless it does a 2nd reverse split first. Then after the 2nd reverse split it is headed to $.0001/share again.

But hey the CEO gets to live in a big beautiful house with the money that is being sucked out of the pockets of the retail shareholders that ignored all the warning way back when this was in the multiple pennies and continue to ignore all the warnings as this things heads to $.0001/share over and over through multipe reverse splits. Good DD by the way finding that section in the filings

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142108811

On February 1, 2018, the Company paid $54,120 for housing occupied by our Chief Executive Officer.

On February 1, 2018, the Company signed an operating lease for a residence to be used by our Chief Executive Officer, located in Moorpark, California. The lease term commenced on February 1, 2018 and expires on January 31, 2019. Our monthly rent is $4,510, payable in equal monthly installments. On February 1, 2018, the Company prepaid the $54,120, for the full term of the lease. As at May 31, 2018, we recognized $36,080 as a prepaid expense. Total net rent expense related to our operating leases for the nine months ended May 31, 2018 and 2017, was $38,540 and $16,400 respectively.

As far as the $4,119,148 in cash as of May 31, 2018. That cash will all be gone by the time the next 10Q comes out. ABWN burns through cash like it is nothing. I'm not sure I have ever seen a public company run more poorly than ABWN.

According to the 10Q, over the past 9 months ABWN made $15,179,361 in cash through Convertible Debt Notes and the sale of stock options, warrants, and preferred stock. Since ABWN was down to just $4,119,148 in cash as of May 31, 2018, that means that ABWN already burned through over $11,000,000 in just 9 months with almost nothing to show for it except for over 2 billion shares of dilution and hundreds of billions of more shares of dilution in the future.

ABWN made $6.7 million on May 29, 2018 from the sale of its preferred stock yet on May 31, 2018 they only had $4,119,148 in cash left. Where did they spend $2.6m in just two days?

I can tell you it wasn't spent on paying off convertible Notes. ABWN issued discounted free trading stock to the Note holders. According to the 10Q, ABWN issued 634,818,042 shares of common stock for the conversion of $1,008,131 in convertible notes and accrued interest of $18,271. That's an average price of $.0016/share.

And I can tell you it wasn't spent on research and development to get a product ready to go to market. According to the 10Q, ABWN only spent $18,100 on research and development over the past 3 months.

The ticker is run as an insider enrichment scheme way more than as a real company. I mean just look at the expenses from the past 3 months alone:

$2,048,596 for professional fees which according to the 10Q was mostly consulting fees
$6,317,452 for stock based compensation which was stock payments to officers, directors, and consultants
$1,255,280 for marketing which is ridiculous since ABWN doesn't even sell anything. What are they marketing besides their stock?




Go back and look at the last 9 months and ABWN has an operating loss of $54,547,357. That is insane for a company with $0 in revenues and no cost of sales. It's mostly because of stock issued to insiders:

$44,278,826 in stock value sucked out of the company because of stock based compensation.

What did the officers, directors, and consultants do to earn $44,278,826 worth of stock beside run ABWN into the ground?



Speaking of service providers.... ABWN has some anti-dilution agreement with Air Lease Corporation and Jet Midwest Group which requires ABWN to issue more stock to Air Lease Corporation and Jet Midwest Group any time they issue more stock to anybody else so that Air Lease Corporation and Jet Midwest Group will always own the same percentage of the O/S. 10% for ALC and 1.6% for Jet MWG.

So as the O/S gets diluted by the convertible Note holders and the preferred share holders and the warrant holders, ABWN has to also dilute it further by issuing more stock to Air Lease Corporation and Jet Midwest Group.



It is easy to see why the A/S was raised to 5 trillion when you consider that ABWN could easily be facing more than 500,000,000,000 more shares of dilution from the preferred share conversions which will mean over 50,000,000,000 shares having to be issued to Air Lease Corporation and Jet Midwest Group to satisfy their anti-dilution agreement. Then who knows how many more shares will be issued to officers, directors, and consultants.


People blaming shorters for the price drop are not paying attention to the ABWN filings.

What do you expect to happen when the O/S goes from 111,713,403 on May 31, 2018 to 2,390,496,267 on July 6, 2018?

What do you expect to happen when 634,818,042 free trading shares are issued for the conversion of debt and 1,754,219,336 free trading shares are issued for the conversion of preferred stock over just a 5 week stretch?

When dilution happens at that quantity that fast the price drops very quickly.

And the dilution is only a fraction of the way done. There are still hundreds of billions of shares that are left to be diluted into the market from preferred share conversions.

But hey why should the CEO care that ABWN is headed to $.0001 then a reverse split then $.0001/share again then another reverse split then $.0001/share before 2018 is even over. ABWN shareholders already paid the rent for his big beautiful house for the rest of the year.

On February 1, 2018, the Company paid $54,120 for housing occupied by our Chief Executive Officer.

On February 1, 2018, the Company signed an operating lease for a residence to be used by our Chief Executive Officer, located in Moorpark, California. The lease term commenced on February 1, 2018 and expires on January 31, 2019. Our monthly rent is $4,510, payable in equal monthly installments. On February 1, 2018, the Company prepaid the $54,120, for the full term of the lease. As at May 31, 2018, we recognized $36,080 as a prepaid expense. Total net rent expense related to our operating leases for the nine months ended May 31, 2018 and 2017, was $38,540 and $16,400 respectively.