Time is running out for holders of Convertible Promissory Notes, Convertible Debentures and other financial arrangements. By the end of 2020 tens of millions of warrants that can be exercised at $0.12 per share will no longer have value unless the pps rises to that level or higher. Equity compensation plans approved by security holders of warrants and financial rights for about 60 million shares at an average cost of around $0.08 per share will have no value unless the pps rises to that level or higher.
As of today 2/10/2019 the CEO Mr. Squires will lose value in 2,968,750 warrants at an exercise price of $.06 per share and on 6/62019 he will lose value in another 937,500 warrants at an exercise price of $.08 per share unless the pps is above $.08.
In February 2016, the Board of Directors authorized certain performance-based stock options to be earned upon the Company signing its first solitary sales contract worth in excess of $1,000,000 revenue. The option exercise price of the unexercised unearned options is the greater of (i) $0.30 and (ii) the market price when deemed earned by the Board. As of June 30, 2018, options to purchase 8,400,000 shares were outstanding under the 2009 Plan at an exercise price on average of $.05 pps.
The loss of conversion rights implies the rate of dilution will lessen even with $1,000,000 having been received before January 31, 2019 unless the pps will rise above at least $0.05. Upon the receipt of about $7 million presumably this month for the installation of two mini-reactors in Assam, the market value at a pps of around $0.25 is likely to double to above $.05 pps.
Employees, management and financial instrument holders are under stress. More loans for share conversion and services have become less appealing to note and warrant holders, and certainly more so if $1 million is not confirmed as being received in the forthcoming 10 K on February 14th. Then the pps will drop further -- and then I will buy more shares because I believe in the integrity of Mr. Squires despite never having met him.
What follows now will be interesting indeed, but I predict the price will rise above $0.05 within six months. I hope so because then my many shares largely purchased in the last six months at an average price below $0.05 pps will have gained value. On certain days I felt I was the only buyer. I doubt that loneliness will continue.
