On4 Communications Inc (ONCI)

[DewmBoom]

12/1 Note Maturity Date

ONCI has $48,532 note due on 12/1. Based on the first three days of trading during the last 10 days before the note is due, the Canouse already secured a price of 0.00005 no matter what happened. This will amount to 970 million shares, unless the CEO decided to pay in cash which I doubt it.

If the Canouse gets the shares, he can sell them at 0.0001 with 100% profit in addition to double interest. Based on my account, the current OS is at 4.09 billion shares. This means that ONCI has 940 mil shares available under the AS for dilution.

ONCI can kick the can down the road and not pay or they can pay half the amount for 435 mil shares so the Canouse can return his money plus 15.7% interest, which is not bad.

So, depending on what the CEO does, we could see a huge amount of dilution at 0.0001. On 11/11, I sold half of my investment in ONCI of over 50 mil shares at 0.0002. I did that for tax loss purposes and also to buy back at 0.0001 later in December without triggering a wash sale.

The ship today is under the full control of the CEO.