On4 Communications Inc (ONCI)

[moneym8ker]

Ohhhhhh he’s paid himself.

Make no mistake about it.


He issues convertible notes.

Those note holders convert with shares that were discounted at a 50% or greater discount.

The note holders then sell those shares on the open market and Steve got his paycheck and the note holders got a 100% return on their loan (plus any interest)


If I promise to give you a widget for that is currently valued at $10.00 and give you a 50% coupon then you just got the widget for $5.00.

Now you sell that widget into an open market for $10.00

You got a widget for $5.00 and sold for $10.00 and that’s called a 100% profit.


Everyone wins except for the people who already own the widgets and see the market being flooded with widgets that they bought at $20 and tomorrow the widget will be at $9.00