Or are you referring to this sentence?
Guess what, that was all in the 8k from 9/17. And those convertible debenture at $ 0.2 is already converted into the right to buy shares (Altar Rock Capital is holding $100.000 of the total amount):
But do you have to be afraid for big dumps? No. Why?
So what is this Lock-up and Leak Out Agreement?
In other words, until december 2019 dilution will be very small. To give an example: in the 'worst' case, when the stock trades above 1.76, the can convert 20% of the volume, as long as it stays under $ 5000. So if volume is 20000 (which is a lot as you have seen), and the share price is $ 2, they can't dilute 4000 shares (20%) but only 2500 shares (2500 x $ 2 = $ 5000). And the good thing is the can only dilute at the ask. So no dumping of shares at the bid! And if the PPS falls more than 10%, they can't dilute at all! And last, they introduced a VWAP to limit dilution (Volume-weighted average price (VWAP) is a ratio generally used by institutional investors and mutual funds to make buys and sells so as not to disturb the market prices with large orders. https://www.investopedia.com/terms/v/vwap.asp)
So yes, there may be some dilution, but very slow and only on the buy side. Why? They obviously dont want the PPS to be ruined. You can't have more shareholder friendly conversion rights than this!!
And there are more restictions:
So that people are selling because of this 8k is just stupid. Obviously they didn't read the 9/17 8k.
Second, you want a low float stock with high volume and a small spread. That is a contradiction. Low floats do have big spread and low trading volume. That means they are very volatile. A little bit of buying pressure can sent this up a lot, but it goes the other way around too. Selling pressure let it go down fast. So in a way you should be happy with the slow dilution on the ask that will happen. More shares in the float, less spread and the pps going up.
And last, you say this is a typical otc stock. I have a different opinion. When you do some research on Convictium, you'll see this is a real company that is growing fast. The fall in the share price last Friday isn't caused by a typical OTC diluting company, but by shareholders that don't understand filings and panic if they read the word 'conversion'. Personally, I wouldn't mind if they keep selling. Gives me the chanche to pick up some more.
Recent JKSM News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/19/2024 08:45:39 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/14/2024 08:00:23 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/17/2024 08:00:37 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/10/2024 09:00:22 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 12/21/2023 09:00:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/06/2023 09:00:31 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 09/28/2023 08:00:31 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM