DarkPulse Inc (DPLS)

[TenKay]

For good reason. They just disclosed the conversion terms for the preferred and it is not good.

“and is convertible at the election of the holder into a number of shares of common stock equal to the number of outstanding shares of stock of the Company multiplied by 5 2/3, divided by the number of outstanding shares of Series D Preferred Stock. For example, immediately after closing the Merger on July 18, 2018, there were 89,680,567 shares of the Company’s common stock outstanding, and 88,235 shares of Series D Preferred Stock outstanding, and therefore each share of Series D Preferred Stock would be convertible into approximately 5,765 shares of common stock.”

As the OS increases from the Pref conversions and the number of outstanding prefs decline the amount of common stock issued for each share of the preferreds goes UP.

For example, if 20,000 shares of prefs are converted at the 5759 common shares per share of preferred s happens...that will INCREASE the next conversion to 17,000 common shares per Pref.

Either they make a mistake in the conversion language or the prefs will obliterate the OS eventually.