AIAdvertising Inc (AIAD)

[sello]

If they sold a note that was issued in 2019 after stating previously that they were completed that constitutes as securities fraud. A statement made in a PR carries a forward-looking statement, a statement made in an SEC filing is a whole different ballgame. You can't go back and amend a statement that had a material effect on the stock, which it clearly did, and which insiders of the company profited from and make it all ok. As a matter of fact, doing so would be an admission of guilt and hold the CEO liable for any losses incurred.

https://www.sec.gov/info/smallbus/acsec/ongoinginvestorprotections.pdf

There were only 2 convertible notes outside of the 2019 convertible notes.

The 2013 note had already defaulted and in 2014 and that default set the .004 conversion price. You can not default on a default. The defaulted price is the final price.

The 2018 note does not mature until April 2021, is not in default, and has a set conversion price of .01.

There is no way to justify a .001 conversion. Being that it is almost surely an insider, the CFO, that converted just compounds the issue. If there was no validity to my argument the CEO would not be conceding to an amendment at all. They know they are wrong here and are figuring out how to fix it.

There are only a couple of options, that I can see, which could correct it.

It's either return the shares to the treasury, which actually happened in my last large holding by the way, or adjust the conversion price and apply it to one of the remaining loans with an adjustment to the amount paid off as well.

Short of that, they are going to continue to face backlash from those of us who understand shareholders' rights, or worse risk SEC involvement.

"Oh well, they're diluting again" is all fine and good when they are diluting notes and terms that have been made public. That is not the case here and they have been caught with their hands in the cookie jar.

You don't have to be a lawyer to know the law and shareholders have more power than most realize.