Example conversion note:
Say Edwin takes a note for $200,000 with a share price of $.05
That's 4,000,000 shares needed to convert note at time of sale.
Say the note requires 10x the number of shares held in reserve, so he needs to have 40,000,000 shares in reserve until the note gets converted.
Almost every note you read in the 10K's take the alternate conversion method. Say 40% of the lowest traded share price within 20 days of conversion. So instead of converting at $.05, now they can convert at $.02. Now they have 10,000,000 shares instead of the original 4,000,000.
So like I asked before, how long does an extra billion shares last?
