Alternet Systems Inc (ALYI)

[lesgetrich]

I think you have this backwards. It seems to me they've created a dilution machine. Since they are valuing the RevoltTOKEN (RVLT) based on 20 shares of ALYI plus some benefits, ALYI has to reserve enough shares to satisfy a conversion demand. It's just like a convertible loan to the company. Consequently, tell me if you think I'm wrong. They said the $25 million first tranche was based on valuing ALYI at $.05/share. Consequently, ...


20 ALYI shares x $.05 = $1 value of 1 RevoltToken (RVLT)

$25,000,000 = 25,000,000 RVLT

25,000,000 RVLT x 20 ALYI shares = 500,000,000 ALYI shares

Consequently, ALYI has to reserve 500,000,000 shares for a potential conversion. The OS as of 7/23 is 892,926,281 shares, so it seems they've issued those 500 million shares to cover the conversion. However, ALYI is currently trading at closer to $.01/share which would put the reserve requirement at closer to 5 x 500 million or 2.5 billion shares. Assuming that the SEC accepts their valuation process, how often would they have to revalue the conversion shares. This doesn't even include the additional tranches to get them to their $100 million investment.

Am I missing something?