I'll just repost my post from last week:
A lot of the conversion notes require that Kpay carry a reserve number of shares. The number of shares due for full conversion of the note X3, X5, etc.
Example : The big note from Labrys that ballooned to $445,752.
So lets take that note and say it was issued today.
$445,752 buys 13,207,466 shares at $.03375 (45% of todays price of $.075)
13,207,466 * 3 = 39,622,398 shares needed in reserve.
Labyrs was kind and only required 3X in reserve. But I can find you a bunch that require 4X, 5X, 8X, 10X. Some with conversions at 40% of lowest market price 20 days before conversion.
Now, how about Granite Global from 9-13?
$395,000 requires 10X in reserve shares. Converts at 60% of low price ($.045). That's 8,777,777 shares to convert and 87,777,777 shares to be held in reserve.
So the way Edwin issues these notes like he's handing out candy on Halloween, how far does a billion extra shares get you? You're handing out shares to convert (as share price drops, this # increases), shrinking the reserve.
Also, almost every note has a penalty for issuing new shares. Most are 25% of outstanding principal. Isn't that great?
