Bioelectronics Corp (BIEL)

[4toSchool]

FALSE, there is a SIGNIFICANT difference between a note that converts based on the date of maturity and one that converts on the date of the agreement.

It is actually very simple, and I am glad to provide educational instruction. After you read the information below and realize its accuracy, let me know if I can be of further help. I am always willing to help bring clear and truthful understanding.

#1. If the note's pps conversion term is set at the date of the document, the number of shares is known at that time.

#2. If the note's pps conversion term is set at the date of maturity, the number of shares is unknown at the time that the documents are signed

For the BIEL notes in question:

When a new note is signed, the conversion rate is set at 50% of the market rate on the date of the note, not at the time of maturity. See most recent filing that states

Starting in 2012 and continuing through June 30, 2020, the Company has extended the maturity dates by up to two years on several separate notes through multiple agreements with IBEX, as a result of insufficient cash to make payments on amounts owed. In exchange for the extensions, the conversion prices were changed to 50% of the existing market price of the Common Stock on the date of the extension. Due to the drop in stock prices since the original note issuances, the corresponding shares to be issued on the conversion of these IBEX notes has increased to 21,971,376,573 at June 30, 2020.

Regardless, the wording in the financial disclosures from Year-End 2019 and prior incorrectly used the term "maturity" and should have indicated that it is the date of the document.