Verus International Inc (VRUS)

[shotsky]

You don't get it. They HAD to increase the AS in order to cover the loan from Garnock. It is not intended to be converted, but a company can't borrow money without that backing of shares. If the note calls for a conversion rate, the company MUST have the full amount of shares in the AS to cover the loan. Period. That does not mean Garnock is planning to convert his loan to shares. Those shares in the AS are RESERVED in the treasury, and can't be used for anything EXCEPT converting THAT loan, should Garnock and company decide to do that. Would not make sense to yank the chain now, just before the profits start rolling in...he invested to get the company profitable.