Bioelectronics Corp (BIEL)

[Simpsonly]

No.....the redemption price is predetermined in the convertible note. For example, let's say the share price at the time of the loan was $.003. The share issuance price on redemption at the 50% scenario would be $.0015 based on the amount of the principal plus interest. Easy to see that a lender would be 'under water', on upside potential of the 50%, so to speak, at .0008.

The 50% factor is a protection against a lower price, a bonus if the price is higher. The loans are not without risk and this fact has been under recognized. I can say that such loans were greatly appreciated and kept the closing doors open, more than once.