Greenshift Corporation (GERS)

[Harry Winston]

I have responded in detail to that over-hyped worry from Kevin many times, but it seems I have to do it once again.

He stated then that the debt holders would get more shares by converting their debt if the stock price was very low. He even stated some sample conversions.

If his figures were accurate, then any stock price that was higher than his sample stock prices would result in many fewer new shares as a result of the conversion of debt into stock. Kevin's sample conversions all used stock prices of a penny or lower.

As anyone can see, as of the COB today, the price of GERS stock has been seven pennies for the past calendar week. Assuming a straight-line conversion rate, the debt holders who converted at any time during the past seven days would receive seven times fewer shares. If they had converted when the price was 8¢ or 9¢, they would've received even fewer shares.

If you believe that the price of this sock will trend upward during the next 12 months, then you should recommend to the debt holders that they convert now and collect as many shares as they can.

However, regardless of whether the debt holders convert now, at a rate that is based on a 7¢ price or later, based on a hypothetical 10¢-15¢ price, Kevin's own figures show that the threat of dilution from the convertible bonds is about as meaningful as the threat of a squirrel to a bear.