DD Support Board and Research Team

[nodummy]

RDGL - I've been mostly absent the past 5 - 6 weeks and am just getting back into the swing of things.

RDGL isn't a stock I've followed much over the years, though its previous symbol ADMD sort of rings a bell. Per your PM, I honestly haven't paid attention to George Sharp's involvement there.


It doesn't take much effort to look at the recent filings and get a pretty clear picture of the debt/dilution situation going on with RDGL.

The sharp rise in the O/S and float over the past several months can be mapped out from the filings/public disclosures:

December 31, 2017 the O/S was 65,695,213 shares
March 31, 2018 the O/S was 72,067,213 shares
May 14, 2018 the O/S was 80,897,370 shares
June 30, 2018 the O/S was 117,757,943 shares
August 16, 2018 the O/S was 373,927,406 shares
October 3, 2018 the O/S was 706,575,247 shares

As of October 3, 2018, RDGL had a float of 629,297,257 shares

https://www.otcmarkets.com/stock/RDGL/security

You can see the pattern of the float increasing almost exponentially as the price dropped from $.10/share at the start of January to as low as $.0026/share in September.

Dilution has been an issue for RDGL going back years and years. Developing medical products to take to market costs a lot of money and so RDGL has sucked a lot of shareholder value out of the market over the years (including a reverse split in 2016) to cover their expenses.

The next thing to look at is what has been causing the dilution and how much more should be expected.

Most of the dilution has been coming from debt Note conversions. RGDL Note holders have been able to convert debt into stock at around a 45% discount to the lowest trading price over the previous 30 days of trading. That is a very toxic situation for retail shareholders.

Through those super Toxic Note conversions RDGL added 296,905,363 shares into the float between December 31, 2017 and August 16, 2018.

As of August 16, 2018, RDGL was still carrying at least $2,740,639 in convertible 3rd party debt plus around $428,000 in interest owed to those Note holders.

We don't have any filings yet that cover the period between August 16, 2018 and October 3, 2018, but I'm sure that most of the 250,000,000+ new shares added to the float during that 7 week period were from Toxic Note conversions.



Recently, on September 24, 2018, RGDL filed an 8K with some useful information in it.

https://www.otcmarkets.com/filing/html?id=12975793&guid=wT9MUnYSq38ZVth

The 8K kicked off a nice pump on the stock largely thanks to the fact that RDGL put a halt on all new debt Note conversions for a period of 10 days.

The RDGL stock price rose from $.004/share to $.0389/share between September 24th and October 8th.

In the 8K, RDGL claimed to be trying to complete some kind of capital raise that would help them with their Toxic debt situation.

RDGL said if they could raise $500,000 it would reduce the 3rd party debt down to $2,500,000 plus interest (per the filings, there was around $428,000 in accrued interest owed to the Note holders as of August 16, 2018).

The 8K goes on to state that, upon completion of the capital raise event, all the debt Notes will be amended so that instead of having variable rates of conversion they will all convert into RDGL stock at $.004/share. The 8K clearly states that the change will only occur WHEN and IF RDGL completes that $500,000 capital raise and that there is no guarantee that it would happen.

Apparently RDGL completed a private placement raising $700,000 by October 10th by selling restricted stock at $.005/share causing the $.004/share conversion rate on the remaining 3rd party debt/interest to go into effect.

https://www.otcmarkets.com/stock/RDGL/news/story?e&id=1190561

The PR adds that "shares will be subject to a restriction on any sales below $.02 through December 31, 2018 and will have volume limitations on sales below $.01 during the first six months of 2019". But that statement makes little sense. The Note holders get their stock at $.004 regardless of that the RDGL share price is. I assume that incoherent statement just means that if the RDGL share price falls below $.02/share and $.01/share certain restrictions kick in about how much stock can be sold into the market by the Note holders at one time during the time periods mentioned. If so it is probably there to try to control the dilution and slow down the negative effects of the dilution on the RDGL share price.

With RDGL allegedly completing the necessary capital raise, they presumably get to use the conversion price of $.004/share for the remaining $2,500,000 in principal plus around $428,000 in interest. $2,928,000 converted at $.004/share comes out to 732,000,000 more free trading shares of stock being added to the float in the future.

The effects of some Note holder(s) wanting to hurry and make some money off the inflated prices can already been seen since October 10th with the price falling back into the $.012s and the T trades becoming a common occurrence again.

Unfortunately, RDGL has not provided a copy of the amended debt Notes to the public so the public is not able to inspect the Notes to see if any clauses exist that might kick in some change to the conversion price if RDGL falls below $.004/share and to get a better understanding of the restrictions set on the share sales that the October 10th PR is babbling about. I find that pretty disturbing. We are asked to trust a penny stock with no proof that they are giving us all the facts.

Being the skeptic that I am, I also have to wonder about the RDGL product. RDGL claims its IsoPet® (RadioGel™) product is finally ready to be taken to market for use in pets (it sounds like it is still a long ways off from being marketed for human use). Going through old filings RDGL has been working on getting to this stage since 2010. I assume that they used the claim about being able to finally take their product to market to help them get people to participate in the private placement raising $700,000 selling stock at $.005/share and to get the Note holders to agree to the $.004/share conversion rate among other things.

I guess we'll just have to wait and see. If their product is indeed finally ready to go to market, it has been a long time coming. RDGL has gone through a lot of debt and dilution sucking tons of shareholder value out of the market to get to this point. And obviously the dilution isn't quite over yet. Assuming RDGL doesn't take on any new debt, RDGL is due to see around 732,000,000 shares of dilution from the remaining debt/interest conversions plus 140,000,000 shares from the private placement which will be eligible to become unrestricted once the 144 waiting period has passed.